When purchasing a home, it's usually a good idea to make a 20% down payment. That would mean, if you bought a $300,000 property, you'd pay $60,000 of your own money and borrow the rest.
Making a 20% down payment helps you qualify for the most competitive mortgage loan rates and allows you to avoid the added cost of private mortgage insurance (PMI), which you could otherwise be faced with. PMI is usually mandated by lenders on small-down-payment loans to ensure no financial losses befall them in the event of a foreclosure.
But while a 20% down payment is usually the best move, that's not always the case. In fact, there are eight situations when it may be a good choice to move forward with a home purchase, even if you have far less money to pay towards the property up front.
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