First things first: the basic indisputable fact that you must place 20 percent straight down on a residence is a myth. The typical first-time home customer sets just 7 per cent down.
And specific loan programs enable as low as three per cent and even zero down.
In a nutshell, you ought ton’t think it is “conservative” to produce a big advance payment on a house, or “risky” which will make a tiny payment that is down.
The contrary does work.
Concerning the thing that is riskiest you certainly can do when purchasing house is always to result in the biggest advance payment you can easily. It is often conservative to borrow more, and we’ll explain why.