Let’s be real, saving 20% down payment for a home in L.A. County is harder than sticking to a no carb diet. Despite what our parents may have told us, it’s not always the best approach.

Here’s why?

  • It can take several years to save that kind of money. By the time you’ve saved enough, homes will be more expensive. You’ll end up paying more. Plus, what you saved may no longer be 20% of the new prices. Think of puppy chasing it’s tail.
  • While 20% down has the benefit of lowering your mortgage and eliminating mortgage insurance, it can also deplete your savings leaving you with little reserves for a rainy day.

Here’s what you can do instead

  • Calculate the max monthly payment you want to pay. Then, have a Realtor tell you what price point of home will give you that mortgage based on smaller down payment.

How Small?

  • Veterans can do 0%
  • First time buyers can do 1% – 3%
  • Repeat buyers can do 5% – 10%

But wait there’s more…

Assistance programs can help lower your mortgage. I am currently working with two programs:

  1. One eliminates mortgage insurance and reduces your interest rate
  2. The other gives you a grant of 25K to buy down your rate and pay closing costs.
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