18 June 2022 21:05

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.

  1. Look for Down Payment Assistance Programs.
  2. Tap Into Benefits for First-Time Buyers.
  3. Supplement Your Income With a Part-Time Job.
  4. Sell Some of Your Belongings.
  5. 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.