5 Creative Ways to Save for a Down Payment

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5 Creative Ways to Save for a Down Payment

Creative ways to save for a down payment on a houseMost people who are looking to buy a home for the first time are tired of throwing away their paychecks on rent rather than building equity with a mortgage.


1.)    Grocery Coupons: You don’t have to be an ‘extreme couponer’ to save $200-$300 a month on your grocery bill with coupons. This can add up fairly quickly and result in around $5,000 saved in just over a year. To accomplish these savings all you need is to invest money and time in a Sunday paper and also receive the free inserts that come delivered to your mailbox once a week day.

2.)    Gift Money: What is gift money? It is simply just that; a gift from family members or a documented close relationship. It is beneficial for the buyer if the person giving the gift provides a gift letter and paper trail of the money given. In other words, gift money cannot be funds sitting at home in a safe; instead they’ll have to provide a bank account showing their ability to gift the money.

3.)    Sale of a Good: If buying a house means more to you than having those recreational vehicles, believe it or not, you can sell those vehicles and use the net proceeds from the transaction as your down payment. As long as you can paper trail the money from start to finish and pass the litmus test you should have no problem using that money for a house purchase.

4.)    Use a Lease Option: This creative way could go hand in hand with the money saved on groceries or even the commitment of setting aside at least $20/week. If you find a home that you are interested in buying see if a lease option is available. This way you can save money for the purchase of the home while securing the house with a rental payment.

5.)    Assumable Loan: Look for a home with an assumable loan. Instead of buying out the owners’ equity, ask the seller to carry back a second mortgage for an equal amount. If this creative way is used, you can buy the home without a down payment.

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