How much should you save for a down payment?  Obviously the answer is different for everyone, but there are few key things to consider that could help you start your savings plan! The down payment is something you can start prepping for even a year or two in advance.

So, how much should you save for a down payment?

  • Decide how much you want to spend. Overall, you should base your down payment on your budget.  How much are you willing to spend on a house?  Be realistic. Look at the neighborhoods you’re interested in and what are must-haves for you in a home. Plan according to what you’re seeing on the market!
  • Aim for 20%. When you save for a down payment, try to aim to have 20% of the home’s value set aside. Why 20%?  It’s a common recommendation when you save for a down payment because at that threshold, you no longer have to pay Private Mortgage Insurance, or PMI. PMI basically protects the lender should you default on your loan. It’s not necessarily a bad thing, but it is an extra premium you pay.
  • Make a plan. Decide how much you want to lay aside each month to save for your down payment.  We usually suggest setting a goal purchase date and dividing 20% of your budget by the number of months you have to save.
  • Crunch the numbers. It’s always a challenge to save for any big purchase.  Figure out where you can pinch pennies, and where you and your partner agree you can’t.
  • Build up your credit! It might not be the first thing that comes to mind when you think of saving for a house, but working on your credit can help you get a better loan and possibly avoid PMI.


Hopefully this helps you and your family come up with a game plan for a down payment!  It doesn’t have to be as hard as it sounds.  And when you’re ready to buy the perfect house, give us a call!  We’re a Christian Mortgage lender that values faith and family, just like you.  We’d love to help.




The Christian Mortgage Mom