4 Ways to Save Up a Home Down Payment ASAP

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When you’re trying to save up a home down payment quickly, techniques such as reducing your current housing budget could help. Find out more. 

Saving up a home down payment can be a huge source of financial stress. While the average home down payment has hovered around 6% to 7% since 2018, according to the National Association of Realtors, the median sale price of a home as of the first quarter of 2023 was $436,800. Even if you make just a 6% down payment, that would still mean saving as much as $26,196 to buy a median-priced house.

If you want to buy a place of your own, there are ways you can try to save for your down payment more quickly. Following these tips could help you get the money you need for your down payment ASAP so you can get a mortgage soon and move into your dream house.

1. Downsize your current housing arrangement

If you can cut your current housing costs, you can divert some of that extra money to saving for a down payment. Consider renting out a spare room, moving in with family temporarily while you save money, or moving to a cheaper, smaller apartment.

While you may not enjoy sharing your space or living in cramped quarters for a long time, you’ll only be making this sacrifice temporarily so you can buy a property of your own. It could be well worth living in a less-comfortable area for a limited period so you can end up in a home of your own sooner.

2. Take on extra work

There’s no limit to the amount of extra money you can earn, so try to fill some of your spare hours with jobs that will bring in additional funds you can put toward your down payment. Doing some overtime at your regular job or finding a side gig such as driving for a rideshare service could be a great way to bring in a few hundred dollars extra each month that can go directly into your down payment fund.

3. Declutter by selling unnecessary items

If you’re going to be moving into a new house, you’ll have to move all of your stuff. This can be an expensive hassle. But the good news is that you can both make your move easier and bring in extra down payment funds by selling unnecessary items. Craigslist, eBay and Facebook Marketplace are some great options to bring in extra cash for your home down payment by selling things you don’t like enough to move with you.

4. Temporarily slash your spending on non-necessities

Finally, you can cut your budget down to the bare bones, eliminating expenses like dining out and reducing your entertainment spending. Again, it’s important to remember these are just short-term sacrifices in service of your goal, so you don’t need to do it forever.

To help keep you motivated, tape a picture of your dream home over the area in your wallet where your credit card is kept. Each time you’re about to buy something, pause for a moment to ask yourself if you’d rather get your house sooner or buy the item. By doing that, you’ll be surprised how often the item ends up back on the shelf.

Taking as many of these four steps as possible can get you a long way toward saving a big down payment, which will also likely make it easier to get approved for a mortgage loan. So, get started today and you’ll hopefully be in your home before you know it.

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