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How to Save for a Down Payment (Without Going Broke!)

  • Writer: Rachel Harper
    Rachel Harper
  • Feb 21
  • 3 min read


Think You Need 20% Down to Buy a Home? Think Again!

If you’re a first-time homebuyer, one of the biggest hurdles can be saving for a down payment. You might have heard you need 20% down to buy a home—but that’s NOT TRUE!


In So You Wanna Buy a Home? Episode 3, Aden Harper sits down with Jason Harper, an experienced broker and lender, to learn:

✔️ How much you actually need for a down payment

✔️ How to save money faster (without sacrificing your entire life)

✔️ Hidden programs that offer free money for homebuyers


If you’re struggling to figure out how much to save or just want smart money-saving strategies, this episode is for you!

How Much Do You Really Need for a Down Payment?

The idea that you need 20% down is one of the biggest home-buying myths out there. While putting 20% down can help you avoid mortgage insurance, most first-time homebuyers put down far less.


Here’s what you actually need:

🏡 Conventional Loan: As little as 3% down

🏡 FHA Loan: 3.5% down (great for lower credit scores)

🏡 VA & USDA Loans: 0% down if you qualify


💡 Example: If you’re buying a $300,000 home, a 3.5% down payment is just $10,500, NOT $60,000!


How to Start Saving for a Down Payment

Even if $10K sounds like a lot, breaking it into small steps makes it much more doable.

🎯 Your Game Plan:

✅ Set a Timeline – Want to buy in 2 years? That’s about $417/month in savings.

✅ Automate Your Savings – Set up an auto-transfer so money goes into a “House Fund” before you even see it.

✅ Cut Unnecessary Expenses – Look at subscriptions, takeout, and impulse buys—small changes add up!

✅ Pick Up a Side Hustle – Even an extra $100/month could speed up your savings.


💡 Pro Tip: Put windfalls (tax refunds, bonuses, cash gifts) straight into your home savings account instead of spending them.


Hidden Ways to Get Free Money for Your Down Payment

Did you know there are programs that GIVE you money for a down payment? 😲


💰 First-Time Homebuyer Grants & Assistance Programs – Some states offer cash assistance to cover part of your down payment.

🏢 Employer Homebuyer Benefits – Some companies offer down payment matching or low-interest loans for employees buying homes.

🎁 Gift Funds from Family – Many loan programs allow family to contribute toward your down payment.

🔍 Where to Find These?Search for "first-time homebuyer grants in [your state]" to see what’s available. You’d be surprised how much free money is out there!


Your Homework from Episode 3

If you’re serious about buying a home, start saving now—even if it’s just a little at a time!

✅ Open a savings account for your down payment

✅ Set up a monthly savings goal (even $50 helps!)

✅ Research homebuyer grants in your area


What’s Next? Episode 4: Mortgage Loans Explained

Now that you’re saving, it’s time to figure out what kind of mortgage you need.

In Episode 4, we’ll break down:


✔️ The best mortgage options for first-time buyers

✔️ What interest rates mean for your payments

✔️ How to choose the right loan for YOU


👉 Subscribe to Follow Aden’s Journey: [Insert YouTube Link]

💬 What’s your biggest challenge when saving for a home? Drop a comment below—we’d love to help!


Stay Connected for More Home Buying Tips!

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