Where should I place money I’m saving for a home downpayment?
The best place to save for a down payment Ideally, choose one offering a higher interest rate than your traditional savings or checking account. Examples include a high-yield savings or money market account.
How do you get around a down payment?
Programs can help, such as the Federal Housing Administration (FHA), which offers mortgage loans through FHA-approved banks.
- Look for Down Payment Assistance Programs.
- Tap Into Benefits for First-Time Buyers.
- Supplement Your Income With a Part-Time Job.
- Sell Some of Your Belongings.
- Downsize Your Lifestyle.
What happens if you don’t have the down payment?
When you don’t have 20% to put down, you usually have to have private mortgage insurance (PMI) in some form. If you buy without a down payment when home prices are at their peak, you may owe more than your home is worth if the housing market drops.