Your down payment is only one part of the cash needed to buy a home. A useful savings plan has three buckets: the amount applied to the purchase price, transaction costs, and the reserve you keep after closing. Assistance programs may help, but eligibility and repayment terms vary.
Protect the reserve as deliberately as you save for the down payment.
Name each cash bucket
List the target down payment separately from lender and third-party closing charges. Add prepaid insurance and taxes, initial escrow deposits, moving expenses, and immediate repairs. Use actual estimates as they become available instead of assuming one percentage covers everything.
Choose a sustainable timeline
Subtract funds already available from the target. Divide the gap by the number of months before you expect to buy. If the monthly savings target is too high, adjust the purchase budget, timeline, or program with your lender.
Review assistance carefully
Ask whether assistance is a grant, forgivable loan, deferred loan, or repayable second mortgage. Find out how selling, refinancing, or moving affects it. Do not count on assistance until the administering program confirms eligibility and availability.
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CFPB: Exploring your loan choices ↗HUD: Housing counseling ↗General education, not an approval or personalized recommendation. Loan terms and eligibility vary. Our editorial standards.