11 Ways to Save for a Down Payment

On the path to home ownership, few tasks seem more insurmountable than having to save for a down payment. The median asking price for U.S. housing in 2023 was just over $206,000, according to data from the U.S. Census Bureau. For that price, competitive buyers are expected to put down between $20,600 and $41,200—no small chunk of change for most people. Stagnant wages and student loan debt have made it more difficult than ever before to save for a down payment, but plenty of people do it with careful savings plans. Read on for some actionable down payment advice, including 11 ways you can start building up the capital you need.

How much do you need to save for a down payment?

You may have heard that 20% is the gold standard when it comes to down payments, but in fact, many of today’s buyers are putting down closer to 5% or 10%. And if you’re a first time buyer who’s willing to take on the added cost of mortgage insurance, you can even get away with putting down just 3% of your total home’s purchase price as a down payment.

Keep in mind that the amount you need to save for a down payment varies greatly by your lender and your credit qualifications. To get a feel for your own situation, reach out to a mortgage broker. They’ll be able to pull your true credit score (not the one you see on a consumer report) and based on their expertise tell you how much you’ll likely be expected to put down.

How to save for a down payment

Whether you’re putting down $1,000 or $50,000, you’ve still got to figure out how to save what you need. Incorporate one or more of the following tips into your savings plan to start saving faster.