6 Ways To Save For Your Down Payment

Buying a home these days will require you to put a fair amount of money down as you secure your mortgage. With property prices as high as they are it only means that you will need even more money to put down. You can put less than 20% down but that can make your offer looking not as strong in today’s highly competitive market where many are paying cash. So unless you have a good amount of equity from a home that you may be selling, then here are some helpful ideas for how to save to purchase your next home.

Pay Your House Fund First

A great way to keep your house funds from getting mixed up with other savings is to keep it in its own separate account. Get yourself to pay it first, just like it’s one of your bills every month. Automatic and recurring transfers are also a good option if possible. 

Fund Your Down Payment 

Some people are lucky enough to have friends and family that will help contribute something to your house fund. There are a few options out there like HomeFundit or Feather The Nest which allow you to reach your goal just like GoFundMe. You can also set target amounts and create deadlines too.

Save Your Spare Change

Some apps or even banks will help you save by rounding up your payments to the nearest dollar and will save the extra change in a separate account that you have created for a home. Over time the savings can add up!

Research Assistance Programs

Various local governments offer some down payment assistance programs and grants that you may be able to take advantage of. Many are often income-qualifying but there are others for teachers, firefighters, and the like.

Adjust Your Taxes

If you are somebody who gets a good sized tax return each year then you may consider lowering your exemptions to regularly take home more cash and invest and save it.

Check Retirement Savings

This should really be your last option to resort to. Some very important things should be considered here like your age, whether or not your IRA or 401k allows a one time withdrawal for down payment with no penalty and the like as replacing this money will take time of course. Your financial planner will be the best person to advise you on this.