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Can I buy a home with $50,000?

The answer is yes, but the real question is “should you?”

The simple answer is that you can buy a home with $50,000. However, in many cases, it may not be worth it.

The reason is that most lenders require a down payment of at least 5% of the purchase price of the home (or the amount financed). With $50,000 on hand, this means you’d need to come up with $25,000 — which could be difficult to do if you’re applying for an FHA loan or other low-down-payment mortgages.

There are exceptions though: You might be able to get around this requirement by choosing a less expensive home or opting for an adjustable-rate mortgage (ARM). But even then, there are lots of reasons why buying with such a small down payment might not make sense.

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Last modified: July 30, 2022