5 Ways to Save for Your Down Payment

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For many, having the necessary money to put down on a new home may seem like an insurmountable goal, but without making major lifestyle changes, there are some small things you can do to greatly increase your ability to save that down payment and get yourself on the road to homeownership!   

If you are active or retired military, you can purchase a home with a VA loan with $0 down payment and on select homes Lacrosse Homes may provide assistance with closing costs so your entry to a new home is very affordable.  With FHA loans, the down payment requirement may be as low as 3.5%, but remember, if you put down less than 20% you will be required to pay mortgage insurance.   

Here are some super easy ideas on ways you can save for your down payment: 

  1. Brown bag it – preparing meals at home for lunch at work, and foregoing the morning stop for coffee and a bagel can really add up.  Try it for one month and put all the money you would normally spend aside – it’s bound to be couple of hundred dollars. 

 

  1. Do you have a gym membership? If you haven’t been there in a month or more, cancel or freeze your membership.  Consider this:  according to statistic brain, 67% of people with a gym membership don’t use them.  Chances are you’re paying more than $25 a month and that equals $300/year. 

 

 

  1. What did you do with your tax refund?  This could be amount to a substantial lump sum that will set your down payment savings program in high gear.  

 

  1. Call your local cable, phone and insurance companies to ask for a lower rate.  You might even qualify for a loyalty discount.  Doesn’t hurt to ask and chances are you’ll come away with some sort of reduction in your fees, or increased services. 

 

  1. Renting?  Can you get a roommate to help offset your costs?  How about rooming with a family member – remember, it’s not forever, you have a goal in mind and time moves fast, so this temporary solution will pay dividends when it comes to saving for your down payment. 

 

Check out www.laxhomes.com and www.redwood-mortgage.com for more details.