Topic
Buying a home
Down payment, mortgage type, and share-of-income guardrails advisors publish for buying a primary residence.
The question “am I ready to buy a house” turns into three sub-questions most advisors answer explicitly: how much down, what kind of mortgage, and how large a housing payment relative to income. This page lines up each advisor’s public position on those.
What each advisor says
| Advisor | Stance | Source |
|---|---|---|
|
The Money Guy Show
Financial Order of Operations
|
The Money Guy Show’s 3/5/25 Rule for buying a primary residence:
3% down minimum on a first home (20% on subsequent homes), plan
to hold at least 5–7 years, and keep total PITI at 25% of gross
household income or less. A 30-year mortgage is acceptable but
should be paid off by retirement.
|
Primary source
fetched 2026-07-13
|
|
Dave Ramsey
Baby Steps
|
Dave Ramsey’s rule is total housing payment (PITI + PMI + HOA) at
25% or less of monthly take-home pay (not gross — a stricter
base than Money Guy’s gross-income cap). Prerequisites: completely
debt-free, 3–6 months emergency fund in place, and 20% down (5–10%
acceptable for first-time buyers). Mortgage type: 15-year fixed
only — no 30-year, FHA, VA, USDA, or ARMs.
|
Primary source
fetched 2026-07-13
|
|
Ramit Sethi
Conscious Spending Plan
|
Ramit treats buying as a personal decision rather than a required
milestone — “renting might be better than owning depending on
circumstances.” When the numbers do work, he cites the 28/36 rule
(28% of gross monthly income on housing, 36% on total debt) and
20% down conventional or 3.5% FHA, with a hard-eyed accounting of
phantom costs (HOA, taxes, insurance, maintenance, utilities,
closing costs of 2–5%).
|
Primary source
fetched 2026-07-13
|