1) Know your savings target
Start by estimating how much cash you’ll need for both the down payment and closing costs.
- Down payment: Usually 3–20% depending on your loan type and credit.
- Closing costs: Typically 2–4% of the purchase price.
- Move-in cushion: Budget for immediate setup costs like utilities, cleaning, or furniture.
Tip:
Ask your lender for a detailed estimate early - it helps you set a realistic goal before you start touring homes.
2) Create a savings timeline
Break your total goal into smaller, consistent contributions over time. Even $200 a month adds up quickly.
- Set up automatic transfers to a high-yield savings account.
- Track progress monthly to stay motivated.
- Redirect windfalls - tax refunds, bonuses, or side income - straight into savings.
3) Look into down payment assistance programs
Many cities, states, and lenders offer grants or loans to help first-time buyers with upfront costs.
Common assistance options
- Government-backed loans (FHA, VA, USDA)
- Local down payment grants
- Employer homebuying benefits
- Matched savings programs
Eligibility varies by:
- Income & household size
- Property location
- Loan amount & purchase price
4) Save smarter with small adjustments
You don’t need major lifestyle changes to grow your savings - small tweaks can make a big difference.
- Cut one recurring expense and redirect the savings (like unused subscriptions).
- Use cashback or reward apps to add a few extra dollars each month.
- Sell or donate unused items and deposit the proceeds.
Ready to make your first home a reality? Compare agents who offer first-time buyer incentives - for free.
*Informational only; not legal, tax, or financial advice. Programs vary by market and lender.