Reply #11: What if you have a high income but not much saved? [View All]

[taught_me_patience]

Why not put less than 20% down? The 20% down payment requrement is difficult for first time homebuyers... especially because there are a bunch of other closing costs involved... hence FHA loans for first time home buyers. My wife and I put down 10% on our first condo and easily have enough to pay our mortgage. We just couldn't save the 20% necessary (100k) and still have enough cash for emergencies.

It also begs the question... why stop at 20% if you want to eliminate bubbles, why not require 50% down? After all, that how much many homes declined when the bubble burst.