Something New Buyers don’t often think about when buying a home is where their down payment will come from. With most loans a down payment of some size will be required. While each loan has different requirements its important to know what your responsibility will be up front, your Lender will be able to explain this to you in detail. That being said, I have included some tips for saving a Down Payment that will help you get in your new home faster.

1. Cut Back Expenses

The most obvious way to start saving for a Down Payment is buy cutting back on some unnecessary expenses. Look at your budget, or make one if you don’t have one, and choose what isn’t as important to you. One great example is cable. Many people are taking advantage of great, inexpensive services like Netflix and Hulu. Often times they aren’t utilizing their cable services and paying a great amount. Think about canceling cable and putting the money you are saving into savings.

2. Match Savings

This idea isn’t new, but for sure is a way to build your savings quickly. Every time you spend money on something you don’t need take the total and transfer the same amount to savings. Not only will this help you save more, but it can help you see exactly how much you are spending on things you probably don’t need.

3. Consider Your Home-Buying Timeline

Depending on the price of the home you purchase your Down Payment could be any where from $5,000 to $50,000. These numbers can seem intimidating, but there is no rule saying you HAVE to buy right now. So, consider your time frame. Make a plan and stick to it!

4. Saving Guides

You probably have seen Saving Guides on Facebook or Pinterest. These can be a great start to your budgeting. Check out this one below!

52 Week Money Saving Challenge

5. Consider FHA Loans

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made.  It’s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.