That left them with for emergencies and furniture. They realized they didn't need a "perfect" 20% down payment to start their lives; they just needed enough to be "house-safe."
This was their biggest hurdle. To avoid private mortgage insurance (PMI), they wanted 20%, which on a $400,000 home was $80,000. Sarah pointed out they could put down as little as 3.5% ($14,000) with an FHA loan, but their monthly payments would be higher. how much money do you need to buy a house
They closed on a modest cottage two months later. It wasn't the mansion they'd imagined, but it was theirs—and they still had enough money left over to fix the water heater when it gave out three weeks after move-in. That left them with for emergencies and furniture
To give you a better idea of your own "magic number," tell me: What is the in your target area? Sarah pointed out they could put down as little as 3