As a Realtor, I’m often asked a lot of the same questions. That’s not necessarily a bad thing. The truth is I can usually tell what question is coming up once I’m in a conversation with someone.
Typically the number 1 question that I am asked is “how is the market”?
But, there’s a lot of other questions that I’m asked that people wouldn’t necessarily think that I’m being asked these questions. One of those questions revolves around how much down does someone need to buy a house.
The question is something along the lines of, “do you think I can buy a house with $10,000 down, or do I need 20% for a down payment like I always hear”?
The quick answer is, yes you can purchase a home with a $10,000 down payment.
Of course, it’s not that easy though, right? There’s always a catch with things and this is no different. Perhaps saying there’s a catch to putting $10,000 down to buy a house is not the right words. There are terms that come with putting that amount down on a home. You just have to decide if you can handle those terms.
Let’s back up just a bit though.
The first thing you would need to do as a Buyer is figure out what are your actual financial options for purchasing a home. That starts with a great home lender.
I don’t want to get too deep into the lending side of purchasing a home, because let’s be honest, I’m a Realtor and not a Lender. However, I do know enough to pass along to a new home buyer and then you should verify with your Lender, which of course I have a great recommendation on a fantastic Lender. Just reach out to me!
A Lender is going to review your finances. They are going to really look in there and see how often you are paid, they’ll require paycheck stubs, how much do you have in savings, do you have any debt and if so how much, what other assets do you own, and anything else they need to assess your credit worthiness.
Once that part is done, and it’s really not that painful, then you’ll have a good idea on the options you have for purchasing. In some cases, you could even get away with zero dollars down.
Now, that may seem like a fever dream, but it is true – at least in Utah. This is how it works, and you may not like what you’re about to read. You essentially have two mortgages. The first is for your home loan, and the second is for your down payment.
A lot of people will tell you not to go that way, but if it means you can be in your own home and start building equity then why not? You just have to know a few tricks, and be disciplined enough to stick to them to make the whole thing work. That’s where people get stuck. They don’t stay disciplined enough to really get out what they can from this program that gives you a zero dollar down payment.
The first thing is to pay any extra to the second mortgage (a.k.a. your down payment you borrowed). Second, you need to stay put for a while. Your home isn’t going to appreciate in value overnight. Yes, that happened in 2020 and 2021, but the effects of that are being felt in 2025. Also, you should always think of your home as your shelter first. The fact that it can appreciate in value over time is a feature, and not the reason you should own.
Finally, you’ll probably end up with PMI, which is known as Primary Mortgage Insurance. People hate the letters PMI, and I can understand why. Yet, if it is going to help you achieve homeownership and you’re able to afford it (always a key part), then don’t let that deter you from making the purchase happen.
Those are things to keep in mind with zero down payments, but what about if I put down $10,000.
You’re probably still ending up with PMI on your loan. Hopefully it’s not that much per month, and again you should be able to afford it. If you can’t afford your monthly payment then buying a house is not for you.
In Utah, it is up to the Buyer and the Lender to decide the financial terms. The Seller doesn’t see that. There is a place for us to put numbers in on the Real Estate Purchase Contract, but those numbers can be changed at any point and you don’t have to notify the Seller.
So, yes you can put $10,000 down to buy a house. You’re going to have a very large loan and it’s not going to work for a property that is worth $1,000,000 but it can be done for first-time homebuyers.
Remember though! You need to speak to a Lender about all of this, and they may tell you not to do it. That is all for you to decide after you get all of the facts.
Best of luck on your house hunting! And if you’re in Utah looking for a home then give me a call 801-231-4794.
