How do people buy a house in this city when a jumbo loan is needed? I can't swing 20% for a down payment!

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Why can’t you buy a house for smaller price and move up?

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Easy people don’t do a 20% down payment and roll the dice with what the interest rates and market will do; otherwise, they are married and combined make close to 6 figures while saving. Nearly impossible without a close to 6 figure salary if you’re looking to be closer to the city. 30min outside city center is easier.

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Who advised you that a jumbo loan is needed to purchase? DM me if you have questions - I am a realtor in the area.

My opinion but I don’t think you should be spending $6K on rent as a single mum. You probably make 6 figures which still doesn’t mean you should spend 6k on accommodation. Just my thoughts though

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Years ago when I had the same question about the Bay Area. The key finding was on the more expensive properties it was 2 high earners savings 5k+ a month for 3-7 years to put it down. It’s probably similar in austin. Also lot of cash buyers on the higher end.

General folks, they might not put down the 20% and stretch themselves.

We lived in an emerging suburb for about 5 years, built a ton of equity while also saving and sold. Rolled it into a down payment on a house in the city. A lot of that is luck in the timing and having a high enough income to save at that level, but still doable. Don’t try to put down less if you can avoid it. My advice would be to do the time; build equity and save then roll it over.

Why not put down less than 20%? Just because of the PMI, Or because the mortgage payments will be higher?

My husband and I were lucky enough that my mom let us stay with her for 8 months rent free
This year we bought a house in 78702! And we think it was definitely worth it

You don't need 20% down. Put 10% down if you can, then when you have 22% equity in the house, you get rid of PMI.

I did 10%, then refinanced as my house appreciated. Unfortunately the market doesn’t support that right now

This can be overwhelming and confusing to understand! 1. There are DEFINITELY homes available under the jumbo threshold. 2. Not all jumbo loans require 20% down. 3. Many buyers add a second lien so they only have to bring a 5% down payment and they borrow the other 15% from the second lender. The first lender will help line up that second lender for you. Happy to help review options with you if you’d like! Jlind@firstunitedbank.com - we are the number one lender in Austin and a family-owned bank with billions under management.

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