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Jonathan Schoenhals
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Dave Ramsey on Real Estate


Have you ever listened to Dave Ramsey on the radio or read one of his books? Wondered about his opinions regarding renting or buying for the average family?

Dave recommends the “100% Down Plan” for buying real estate—pay cash for the whole house! If that seems too far out of reach for you, then at least hold off on your real estate purchase until you meet these three conditions:

  • You are debt-free and have an emergency fund of 3–6 months of expenses.
  • You have saved at least a 10% down payment. A 20% down payment is preferable to avoid Private Mortgage Insurance (PMI) payments.
  • If you’re married, you’ve been married at least one year. Don’t add the stress of a home purchase to a brand-new marriage, and never buy real estate with anyone you are not married to!

If you aren’t paying cash, get a fixed-rate mortgage for 15 years or less. Keep your payments low—no more than 25% of your take-home pay. Lenders will tell you that you qualify for more, but stay conservative.

You can read his entire article at the link below.



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