BLOGBlog posted On April 24, 2025
The down payment, so-called the largest hurdle of homeownership, is typically one of the most sizeable investments someone can make in their lifetime, right alongside weddings, retirements, and college expenses. With numerous down payment assistance programs and affordable housing opportunities available, the idea that a potential homeowner has to drop 20% down on their future home is fading, with low-to-no down payment programs becoming more and more prevalent. With that being said, what ways can we share with you that may help bolster your down payment and get you to the homeownership finish line sooner?
How much is a down payment on a house? As mentioned, the typical 20% down payment is no longer the norm as many lenders (like us!) offer options that allow for lower percentages. You can work with us to obtain a preapproval, which will give you a general idea about the amount you want to save for your down payment. We can also help you research the average home prices in your desired area and establish that target amount. That way, you can start budgeting and use a spreadsheet, a down payment calculator, or other expense tracking methods.
Here are some budgeting tactics to help you identify where to cut back:
Creating a separate savings account for your down payment goes hand-in-hand with budgeting strategies. It allows you to visually see your savings progress, and you’ll also be less likely to tap into it when you’re tight on cash. Pro-tip: make monthly or bimonthly contributions automatic into your account so that you don’t have to manually do it every time!
Sorting through your old things, like antique furniture inherited from relatives and old jewelry, can help you twofold during the home loan process: one, you won’t have to move with it if you sell it and two, you can raise more money for your down payment fund! Here’s a list of possible items you could sell at a yard sale, Facebook Marketplace, an auction site, or even host an estate sale:
It’s easy to get discouraged while saving up to buy your home. However, you can break your goals into smaller achievements and reward yourself when you reach each one. For example, treat yourself to a delicious sushi dinner once you hit each $5,000 saved, which will incentivize you to keep on saving and help you stay motivated throughout the process. Or if you’d rather not celebrate your money-saving successes by then dropping money on a lavish meal, you could treat yourself in a more subtle fashion. Pull out that fancy bottle of wine you’ve been saving for the right occasion. Or host a selfcare night with face masks and your favorite movie. Actually use one of those gift cards gathering dust in your drawer and enjoy shopping without having to spend your own money. Little creative ways to reward yourself and keep you steady on the path to homeowning.
Tax Day just passed, so you should be receiving your tax refunds if you haven’t already. Instead of splurging on a special vacation or new boat, tuck your refund away into your down payment savings account, which will help boost your goal even further. This refund could be one of the many steppingstones to securing your dream home!
We offer many home buyer programs specifically tailored to your needs. Many down payment assistance programs are available for qualified buyers, whether you’re a first-time or repeat home buyer. If you want to look into raising funds for your down payment, we offer our exclusive platform, HomeFundIt™! It’s an alternative method of down payment assistance, allowing you to gather donations from your friends, family, and community to help you afford your new home. We even offer a 2-to-1 match incentive, which can allow home buyers to earn up to $2,000.* Your loan officer can help you with all of this and more!
Feeling better about this whole down payment business? With a well-researched outlook and steady strategy, you can enter the home loan process with ease, hopefully much sooner than you expected! If you’re ready to take on the mortgage gauntlet, we’ve got your back.
*Grant is a $2-to-$1 match on regular down payment gifts received on HomeFundIt™, up to the lesser of $2,000 or 1% of purchase price for first-time buyers, as defined by Fannie Mae, who complete home buyer education prior to signing a purchase contract. Talk to your loan officer or visit your HomeFundIt dashboard for next steps, or you can also find a housing counselor near you by visiting https://www.hud.gov/counseling.
Grant funds are applied to nonrecurring closing costs. If closing costs are fully paid by seller or interested party, grant funds can be used to buy down the rate. Grant funds cannot be used towards a down payment. Visit https://www.homefundit.com/Grant for complete terms and conditions.
Source: Yahoo! Finance, Zillow
