Saving for a down payment can be one of the biggest challenges facing first-time homebuyers. Check out our six strategies that – with a little dedication – will help you reach your savings goal!
Create a Budget
The first step in saving for a down payment is creating a budget. Track your income and expenses to identify areas where you can cut back and save more. Allocate a specific amount each month toward your down payment fund and stick to your budget.
Reduce Unnecessary Expenses
Look for ways to reduce unnecessary expenses in your daily life. This could include dining out less, canceling unused subscriptions, and/or finding more affordable alternatives for entertainment. Every dollar saved can bring you closer to your down payment goal.
Automate Your Savings
Set up automatic transfers from your checking account to a dedicated savings account for your down payment. Automating your savings ensures that you consistently contribute to your fund without having to think about it.
Take Advantage of Windfalls
Whenever you receive unexpected money, such as a tax refund, bonus, or gift, consider putting it toward your down payment fund. These windfalls can significantly boost your savings and help you reach your goal faster.
Explore Down Payment Assistance Programs
Many first-time homebuyer programs offer down payment assistance in the form of grants or low-interest loans. Research available programs in your area and see if you qualify for additional financial support.
Increase Your Income
Look for opportunities to increase your income, such as taking on a part-time job, freelancing, or selling items you no longer need. The extra income can be directly allocated to your down payment fund.
Saving for a down payment requires dedication and smart financial strategies. But here’s the problem: in today’s market, saving 20% for a down payment is just not possible for a lot of people who otherwise would qualify to own a home.
Our solution? Our First-Time Homebuyer Program* allows for up to 100% financing for those who qualify, so if you’re ready to buy a home but don’t have a chunk of change saved – don't sweat it. Check out our first-time homebuyer perks and options, and apply today!
*Additional options for first-time homebuyer products/terms available. PMI may be required. Contact one of our mortgage originators to find out which one is right for you.