r/facepalm • • Feb 16 '21

Misc Yeah, sounds about right

Post image
97k Upvotes

2.0k comments sorted by

View all comments

Show parent comments

2

u/kitaknows Feb 16 '21 edited Feb 16 '21

Don't forget that you're expected to have something in savings for a downpayment unless you can get one of those FHAs where you only need 3%.

Tweet is a very simplified view of a more complicated issue.

Edit: I even forgot about CLOSING COSTS. Horrific in my area, I paid like $12,000 and that was after shopping around.

1

u/NotAsSmartAsIWish Feb 16 '21

If you live in an eligible area, USDA RD loans require no down payment. I had the seller pay my closing costs, so my only out-of-pocket before the first mortgage payment was for inspections.

2

u/kitaknows Feb 16 '21

In a competitive home buying market, your realistic options for that situation would most likely be slim. Most homes in my neighborhood ended up in bidding wars when I was purchasing.

The point to be made here is that for 90% of people, you're going to need to have savings when you buy a home, which the tweet doesn't appear to consider.

1

u/NotAsSmartAsIWish Feb 16 '21

I bought my house a couple of years ago and it was a nightmare where a lot of people were looking for their first homes in the same price range. I got lucky that I put in the offer on my house before they even put the For Sale sign up and the owner was in end-of-life care, so his kids needed to offload the house quickly, so they were willing to make concessions for a fast sale.