I believe that, for their own protection, buyers should come up with a minimum of 5% – if not 10% – down when purchasing a property. There are many different opinions on this issue and this is not the opinion of a real estate/mortgage blog called Think Big Work Small that I watch every day. They are very much in favor of a government program called ‘down payment assistance’. The city of Frisco has such a program which allows a person to receive money from the city for a down payment on a home.
I do not care for these programs because that money is coming from me and I don’t want to pay anyone else’s down payment. I believe that people should save their money for their own down payment and then buy the home that they are prepared to pay for. Financial guru Dave Ramsey also disagrees with these programs. His opinion is that everyone should be required to invest 20% as a down payment on their home purchase; he makes no exceptions to this requirement.
I am sorry that I don’t want to be the one offsetting your down payment. I want you to. I did. I believe you need your own skin in the game. Save your own money, buy the house you can afford when you’re prepared to do so and let government focus on what they need to do to enable our cities and our country to continue to grow and prosper.
Nervous about the response this article will receive but felt it needed to be said…
Geoffrey Davis – the “Frisco Mortgage Guy”!
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Honored as one of the Best Mortgage Brokers in Dallas! for D Magazine, 2011 & 2010. Ranked 24th in 2010 in the category Largest North Texas Residential Mortgage Lenders, according to the Dallas Business Journal!