Strategies to Save for a Down Payment

  • Figure out how much down payment you will need
    • Don’t forget to consider moving and closing costs
      • Closing costs include lender fees, appraisal fee, home inspection fee, and transfer fees which can total between 3% to 4%
    • The most common mortgage loans are FHA loans and they typically require a 3.5% down payment
  • Determine your timeline for saving
    • Example: Based on needing $15,000 if you plan to buy a home in 2 years you will need to save $7,500 per year
      • Divide that by 12 months which shows you will need to deposit $625 per month
      • Naturally, the shorter your timeframe is, the higher your annual savings goal will be
  • Start saving for your down payment
    • Transfer a fixed amount into a savings account each month
    • Skip vacations
    • Lower your monthly expenses
    • Save your tax return
    • Reduce high interest debt

If you feel like even with these tips you can’t buy a home because it seems unaffordable there are housing programs that can help you reach your goal (if you qualify). You can contact a financial coach with Family Houston to begin working on saving strategies to buy your home. Our services are offered at no cost to you. 713-861-4849.