7 Ways To Save For A Down Payment

Are you in the market for a new home this year or next?  If so, now is the time to start saving up for a down payment.

Traditionally you would need to have 20% down to avoid having to pay for private mortgage insurance… better known as PMI. But other options like FHA loans only require a 3.5% down payment.

Either way, coming up with a down payment can be a huge hurdle.

To help you with building a down payment, here are 7 simple steps to home ownership:

1. Look for down payment assistance programs like the ones offered by the Hawaii HomeOwnership Center.

2. Open a new savings account that will be used specifically for saving up a down payment.

3. Put your next tax refund in your new savings account.

4. Check with your employer to see if they offer any home ownership help.

5. Commit to putting any pay raise or bonus from work in your new savings account.

6. Have a garage sale twice a year and put the profits in your account.

7. Try moving in with family or downsizing to a smaller house for a few months. Then use the savings from the cheaper rent to build up your savings.

And soon you will be in a position to become a new homeowner!

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