How to save for a down payment in one year

Posted on Posted in Buyer Tips and Advice, First Time Homebuyers, Mortgage Knowledge

What? Save for a down payment in one year? Am I nuts? Well, maybe a little, but not because of this!

How to make it possible to save for a down payment

You don’t need to give up everything to save for a down payment. Simply cut back just a bit.

Morning Coffeecoffee cup icon

Starbucks
$4.50 x 5 x 52 weeks
= $1,170 Have Coffee at home and treat yourself to Starbucks once a week = $419

Work Week Lunchesfork icon

$12 x 5 x 52 weeks = $3,120 Brown bag it 4 days and treat yourself to lunch out once a week = $1,404

Weekday Happy Hourmartini icon

$35 x 2 x 52 weeks = $3,640 Cut back to happy hour once a week = $1,820

Night Out with FriendsParty-crowd

$150 x 52 weeks = $7800 Cut back to every other weekend = $3750
Yearly total $15,730 Yearly total $7,393

Potential Annual Savings $8,337

Is that enough for a down payment?

It could be depending on the loan program that you are applying for.

VA and USDA loan don’t require any down payment so you could use your savings to pay for closing costs.

FHA loans require 3.5% down payment. That potential down payment is enough for a sales price of $238,200.

If you want to maximize your price point, combining your funds with a down payment and closing cost assistance package could be the right solution.

Program Package Example

Sales Price $415,000
First Mortgage
Conventional Fixed Rate
$394,250
Down Payment Assistance $414,525
Closing Cost Assistance $411,900
Your Contribution $6,968

As you can see,  it is possible to save for a down payment to purchase a home is possible with the right game plan.

Are you in California, contact me for a free consultation. Outside of California? Contact your local lender to discuss your options.

If you have any questions on this topic or any other mortgage-related topic, by all means reach out to me.
Send me an email
Give me a call – (858) 3-LOAN-SD
Text LOANINFO to 44222
Connect with me on Social Media.Laura Borja on Social Media

 

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