What $20,000 Actually Gets You
With $20,000 saved, you have three main paths. FHA gives you the most buying power ($571,000) but requires mortgage insurance for the life of the loan. Conventional at 5% down gets you $400,000 with PMI until you reach 20% equity. Putting the full 20% down limits you to $100,000 but eliminates PMI entirely — saving you $13,320 over the first 5 years.
⚠️ PMI Warning
At 5.0% down, you'll pay PMI of approximately $222/month until you reach 20% equity. That's $2,664/year that builds zero equity. Consider saving more before buying — or buying a smaller home at 20% down.
Credit Score Matters Too
Your down payment gets you in the door — your credit score determines the rate. A 620 score vs 740 on a $400,000 home means roughly $138,028 more in total interest over 30 years.
💳 Your Credit Score Could Save You Thousands
Improve your score before applying — even 40 points can drop your rate significantly.
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Not financial advice · Individual results vary
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