More than half (52 percent) of aspiring homeowners cite the down payment and closing costs as a “very significant” obstacle, according to Bankrate’s 2025 Home Affordability Report. Here are our top tips to save for a down payment, advice on how much to put down and a rundown of other costs to consider in your budget.

Most mortgages come with minimum down payment requirements that are far lower than the oft-heard 20 percent. Here’s how the different loan types compare:

When it comes to how to save for a house, there are several ways to do it:

While you might be worried about mortgage rates that are much higher than they were in recent years, the current interest rate environment is great news for your savings. Select banks and credit unions are paying upwards of 5 percent APY on deposits. If your money is currently stashed in an account with a nominal interest rate, think about moving your money to one of these places:

With this approach, you’ll set up automated deposits of a portion of your income into an account for your down payment. For employees with a directly-deposited regular paycheck, you can have your employer transfer a percentage of your paycheck to your down payment account on payday. For freelancers, contractors or business owners, you can schedule a regular, automatic transfer to your down payment account.

If you have the spare time and effort, another income source or a side hustle can help you save for a down payment. You might even be able to turn a hobby into a way to make money.

Down payment assistance could be an option if you’re struggling to save, especially if you’re a first-time buyer. This assistance can come in various forms, from deferred or forgivable loans to grants. Each program has different eligibility requirements, usually based on income and location. Start your search with your area’s local or state housing authority to see if you qualify.

If you’re saving for a house, cutting back on your spending can help. Start with cutting unnecessary expenses, like subscription services, entertainment, delivery services or eating out. If possible, negotiate down recurring monthly or annual expenses, such as getting a better car insurance rate or reducing an internet bill. In addition, reducing as much of your outstanding debt as possible can also help you accelerate savings for a down payment. With less debt, you can redirect money to your down payment fund.

While not an option for everyone, if you’re able to, moving back into your parents’ house or moving in with a roommate can help you save for a down payment, as well. Nearly one-quarter (24 percent) of aspiring homeowners willing to do something to find more affordable housing would take this step, according to our 2025 Home Affordability Report.

While each company’s financial situation and performance measures vary, you might be able to get paid more, especially if you have made valuable contributions recently. Come to the discussion prepared, outlining the work you’ve done and how it’s impacted the company’s bottom line.

Many first-time homebuyers have turned to family members for help with a down payment. If a family member or friend is willing to give you some funds for your home, be sure to document this in a gift letter for your lender.

Your down payment isn’t the only reason you’re stashing money away. As you think about trying to buy a home, it’s important to take a holistic look at your finances. If you’re young and you have been regularly contributing to a 401(k) and/or an IRA, you might consider reducing those contributions temporarily to help boost your savings for a home purchase. Just remember to restart those full contributions once you move in.

There are pieces of your savings strategy, however, that should not be touched. Your emergency fund should remain intact. Once you buy a home, you’ll need that extra cushion to deal with the routine maintenance and repairs that come with being a homeowner.

How long you should save for a down payment depends on how much money you’re putting down and how much you can set aside. When saving for a house, it’s important to remember that location plays a big role. A 10 percent down payment on a house in San Jose, California, is going to be larger than the same house in Jackson, Mississippi.

Timing is another important factor when saving for a house. You might opt to put less money down and take a higher interest rate in exchange for owning a home sooner.

To see how much your down payment will affect your monthly mortgage payment, run the numbers with our mortgage down payment calculator. You can also see how varying interest rates will affect your monthly payment.

How to come up with a down payment may be the biggest question mark on your mind right now, but there are other expenses you need to factor in before you begin hunting for a home, including: