Buying a house is a big financial (and life) decision and can be a stressful process. But the stress can mount if you’re ready to close and are suddenly laid off. Picture this: Samantha, who earns $170,000, is buying a home with her partner, James. Unfortunately, James was laid off from his job just a few days before closing — and after the mortgage lender called his company to verify his employment. Now, Samantha and James are in a difficult position. Can they go through with the loan without informing ...

Affordability Challenges - Affordability remains a significant challenge for homebuyers due to high home prices, which necessitate large down payments [1] - In addition to down payments, buyers must also consider other out-of-pocket costs associated with purchasing a home [2] Down Payment Requirements - The minimum down payment required varies by loan type, with conventional loans typically requiring 5%, FHA loans requiring 3.5% for borrowers with a credit score of 580 or higher, and no down payment required for VHA and USDA loans [6] Closing Costs - Closing costs can add an additional 2% to 6% to the loan amount, significantly increasing the total cash needed for a home purchase [4] - For example, on a $350,000 home purchase with a 5% down payment, the buyer may face a cash shortfall of $6,500 to $19,950 after accounting for closing costs [5] Financial Strategies for Buyers - Buyers facing a cash shortfall have several options, including saving more money for a larger down payment, using gift money from family, applying for down payment assistance programs, or negotiating seller concessions to cover closing costs [8]