Homebuyers

How to Save for a Down Payment - Infographic

April 26, 2019

Did you know, that in 2017 well over a million Americans bought their first home - people who purchased without equity from an existing home?

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How to Save for a Down Payment

Did you know, in 2017 well over a million Americans bought their first home - people who purchased without equity from an existing home?

Develop a budget & timeline

Determine how much you will need for a down payment and create a budget to calculate how much you can realistically save each month. This will help you gauge when you'll be ready to transition from renter to homeowner.

Break down your savings goal into a daily amount

Say you need to save $30,000 for your first home. If you want to buy said home five years from now, you'll need to save $6,000 a year, or about $16.50 a day. Knowing the daily amount will help you make smarter decisions about when or when not to order takeout, buy that $6 latte, or do a little shopping.

Celebrate savings milestones

Saving enough for a down payment can be daunting but breaking it up into smaller goals can seem more attainable. If you need to save $30,000 total, consider treating yourself to a nice meal for every $5,000 saved. This will help you stay motivated throughout the process.

Look into state and local home-buying programs

Many states, counties, and local governments offer programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.

Contact a New American Funding Loan Officer to find out about programs available in your area.