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.
$4.50 x 5 x 52 weeks
|=||$1,170||Have Coffee at home and treat yourself to Starbucks once a week||=||$419|
|$12 x 5 x 52 weeks||=||$3,120||Brown bag it 4 days and treat yourself to lunch out once a week||=||$1,404|
|$35 x 2 x 52 weeks||=||$3,640||Cut back to happy hour once a week||=||$1,820|
|$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.
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
Conventional Fixed Rate
|Down Payment Assistance||$414,525|
|Closing Cost Assistance||$411,900|
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.
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