Learn about 5 great strategies that could help you save for a down payment!

Buying a home is a large investment, and it takes time to save up for a down payment. If you’re worried about figuring out ways to make that down payment happen, we have some great tips for you! It may seem like a daunting task to set aside that much money, but these strategies can help you save up for a down payment faster and with less of the stress.  

Strategies to Help Save for a Down Payment

June 15, 2016

Learn about 5 strategies that could help you save for a down payment!

Buying a home is a large investment, and it takes time to save up for a down payment. If you’re worried about figuring out ways to make that down payment happen, we have some great tips for you! It may seem like a daunting task to set aside that much money, but these strategies can help you save up for a down payment faster and with less of the stress.

Review Your Budget 

When you’ve made the decision to buy your first or next home, it’s a good time to take a look at your budget. Make a detailed list of all of the money you spend each month, including things like going out to eat, shopping, and entertainment. Some online banking sites have helpful tools that show you a thorough report of your spending each month. Doing so will help you see where you could cut back to put some funds into your down payments savings jar.

Look into Community Partner Programs

Certain careers may qualify for Community Partner Programs, which help people access matching funds for down payments and closing costs. Those who work as law enforcement officers, educators, firefighters, or health care workers may qualify for this program. You can receive $4 in matching funds for every $1 you contribute, up to $7,500. First-time and non-first-time home buyers alike may utilize this program, making it a great opportunity for those needing some down payment assistance.

Create a Separate Savings Account

If you struggle keeping your hands off your money when it’s in your checking or main savings account, creating a special, separate account only for your down payment funds may help you save up faster. Opening an account specifically for your down payment savings will not only allow you a specific place to store the money but may help encourage you to keep on saving up as you see the balance grow.

Automate Savings with a Direct Deposit

A simple way to start working on down payment savings is to automate it with a direct deposit. Many employers have a direct deposit option, and often times you can have multiple direct deposits to different accounts. This way you can choose a specific amount from each paycheck to go directly into your down payment savings account, making it simple and streamlined. This is also a great way to stay on a savings timeline. If you’re unable to do this through your work, many financial institutions let you automate transfers to other accounts on a set schedule.

Utilize Down Payment Assistance

If you’re a first-time home buyer or a veteran, there are specific down payment assistance programs for you! If you meet qualifications for the first-time home buyer program, you could receive a match of $4 for every $1 you contribute, up to $5,000. Veterans may qualify for up to $10,000 in down payment and closing-cost funding, without needing to match funds. These programs also include helpful home buyer and financial literacy courses, that help make the entire home-buying process smoother and easier to understand.

If you implement some of these strategies, you’re bound to see your savings towards a down payment rack up over time. With a little determination and planning, you can save up a down payment and take the next steps towards buying your next home.

Do you have a strategy you used to save up for a down payment? Let us know with a comment!

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