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Saving might not seem as fun as spending, but it comes with a host of rewards. Growing your savings account can help reach your goals, cover unexpected expenses without relying on credit cards, and feel less stressed about your finances and your future. Plus, the more you save, the easier it is to grow your savings. This is thanks to compounding interest — when you earn interest on the money you’ve saved, plus the interest you’ve earned along the way.

If you’re sold on saving more, read on. What follows are six (relatively painless) ways to build your savings account and make your money work harder for you.

Setting Clear Savings Goals

The first step toward growing your savings account is to set clear goals. Simply saying “I need to save more” probably won’t do the trick. In fact, it might even be counterproductive because it feels overwhelming and amorphous. Instead, try to be specific about your financial goals. Some examples of goals that can help you stay focused include:

•   Paying down debt

•   Saving for the down payment on a house

•   Buying a new (or used) car

•   Funding your retirement

•   Getting together enough money for a wedding or vacation

•   Building an emergency fund

•   Saving for a child’s college education

Once you’ve honed in on a few specific goals, you can then put a dollar amount and a time frame on each. For instance, if you want to have $24,000 in your emergency fund two years from now, that would mean you need to funnel $1,000 a month into your bank account (though compounding interest can help you reach your goal sooner).

Recommended: How to Deposit a Check

Creating a Realistic Budget for Saving

Next, you’ll want to build a basic budget that can help you grow your savings account and ultimately achieve your goals. While that might sound like a painful exercise, a budget is really nothing more than a plan for spending your money. It helps ensure that your spending aligns with your priorities and helps you do more with the money you have.

There are many different types of budgets — the best one is the one you’ll stick with. One popular approach is the 50/30/20 budget. This involves putting 50% of your take-home earnings toward needs, 30% towards wants, and 20% towards savings and debt payments beyond the minimum. If you live in an area with a high cost of living, you may need to juggle the percentages — and that’s okay. The idea is that you build savings into your monthly spending plan.

You can set up a budget using plain old pencil and paper or an Excel budget spreadsheet. Or, you might take advantage of one of the many budgeting apps available. These tools can do the math for you and share visual renderings of where your money (including your savings) stands. You might start with your financial institution and see what they offer to help you track and manage your income, spending, and saving. Or you could use a third-party app for this process.

Finding the right fit may take a bit of experimentation. Don’t be concerned if one method doesn’t work well for you and you need to pivot. You may also find that a budget that worked when you were a single recent grad doesn’t suit you when you’re a 30-year-old expecting your first child.

Automating Your Savings Contributions

It’s one thing to decide how much you want to save each month; it’s another to actually do it. Many of us are well-intentioned about socking away cash, but when real life intervenes — the temptation of a cheap flight to the Caribbean, a special gift for your parents’ big anniversary — it can be hard to actually build your funds.

That’s where automating savings comes in. By setting up recurring transfers from your checking account (perhaps right after payday) into your savings, you can make the process seamless. No need to remember to move the money. Plus, you won’t see the money sitting in your checking account, where it can entice you to go shopping.

Another idea: If you get paid by direct deposit, you may be able to set it up so that most of the money goes into your checking account and a certain percentage gets deposited right into your savings account, where you’ll be less tempted to touch it.

Choosing the Right Type of Savings Account

The type of savings account you choose can also play a role in growing your savings. Here are some factors to consider:

•   Accessibility: With a traditional savings account at a brick-and-mortar bank, you have the option of in-person services. If you never plan on visiting a branch, however, you might consider a savings account at an online bank.

•   Interest rate and fees: Interest allows your money to grow just by sitting in the bank. A high-yield or growth savings account typically offers a higher interest rate than a traditional savings account. Bank fees, on the other hand, can eat into your savings. It’s worth shopping around to compare annual percentage yield (APYs), as well as fee structures, to find the best deal.

•   Minimum requirements: A savings account may have a minimum opening deposit and a minimum required balance to avoid fees. Depending on your particular situation, this may or may not work well for you.

•   Transaction limits: At some institutions, the way a savings account works is that you are restricted to a certain number of transactions (such as six or nine) per month. If you exceed the stated limit, the bank may charge you a fee. If you exceed the limit multiple times, they may convert the account into checking or even close it.

High-Yield Savings Options

One of the benefits of savings accounts is that they typically pay more interest on your deposits than you can get in a checking account (which typically offer little to no interest). As noted above, some savings accounts pay a higher rate of interest than others. To maximize growth, you might consider the following options:

•   High-yield savings account: Typically offered by online banks, high-yield savings accounts can offer interest rates that are several times that of traditional banks.

•   Money market account: A money market account, or MMA, is a hybrid checking and savings account that can offer features of both, such as check-writing privileges and a debit card, as well as a competitive interest rate. They may, however, require a larger initial deposit and a higher ongoing balance.

•   Certificate of deposit: Certificate of deposits (CDs) typically require you to leave your funds untouched for a set period of time, or term, which could be a few months to several years. When you open the CD, you typically lock in a certain APY — it won’t go up or down during the term of the CD. If you withdraw the money early, however, you’ll usually pay a penalty which could undercut the interest you’ve earned.

Recommended: Savings Account Calculator

Strategies for Cutting Expenses to Save More

Another important way to build your savings account is to cut your expenses, freeing up additional funds to stash away toward your goals. Of course, the best way to do this will depend on your particular situation, but here are some ideas:

•   Cut back on food spending. According to the USDA, Americans spend around 11% of their disposable incomes on food. Some ways to trim back include: planning your meals to save on groceries and avoid impulse buys; shopping less expensively at warehouse stores (split the bounty with a friend if you have a small household); and curbing your takeout or fancy coffee habit.

•   Knock down credit card debt. Credit card debt is typically high-interest debt, and you can save a bundle by paying it down. You might investigate the avalanche and snowball pay-off methods for starters, or consider a personal loan to consolidate the debt at what is likely a more affordable interest rate.

•   Bundle your insurance. You could get a nice discount by having, say, your home/renters insurance and car insurance with the same provider. It can also be worth shopping around to see if you can get a better deal from a different insurer.

•   Reduce your subscriptions. Whether that means lowering the number of streaming platforms, “of the month” clubs, or other accounts/services that you don’t really use, slashing these costs can reap real rewards. Review your credit card bill carefully to see just what you’re paying for.

•   Find cheaper fun. No criticism if you splashed out on Taylor Swift tickets, but there are plenty of free concerts, gallery/museum nights, movie screenings, and readings in many communities. Plus hiking and biking can be a good alternative to big-ticket Pilates and yoga classes. This doesn’t have to be a forever move. Even making some swaps for three or six months can help pad your savings.

•   Make the most of windfalls. A work bonus, tax refund, or inheritance may make you think it’s time for a shopping spree or last-minute travel, but why not save some or all of it instead? One of the best things to do with a windfall can be to use it to pump up a savings account.

•   Rethink your housing. To supercharge your savings, you might reconsider your housing situation. If you live alone, you might get a roommate to dramatically reduce your costs. Or if you live in a pricey neighborhood, you might decide to move to one nearby where the costs are lower and you can save a bundle for a year or two. For instance, you might move 20 minutes further outside a city and reap major savings.

The Takeaway

Having a robust savings plan can help you reach your financial goals and reduce money stress. Moves like pinpointing your savings needs and goals, developing a budget, automating the process, boosting the interest you earn on your savings, and cutting your expenses can all contribute to growing your wealth.
If you’re looking for a bank account with a competitive interest rate, see what SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How much should I aim to save each month?

According to the popular 50/30/20 budget rule, you should aim to put 20% of your take-home pay towards savings and/or additional debt payments. If that figure seems too lofty, it is fine to save less. What tends to be most important is to save regularly, even if it’s only, say, $25 per paycheck or per month.

Are there apps that can help me save money?

Yes, there are a variety of apps that can help you save money. Whether offered by your financial institution or a third party, these tools can help you track, automate, and grow your savings. Some apps offer handy tools like “round-ups,” which rounds purchase prices up to the next dollar and puts the difference in savings. There are also coupon apps that help find discounts on purchases (or free shipping) to help you cut back on spending.

Should I prioritize saving or paying off debt?

It depends on your situation. If you’re carrying high-interest credit card debt, you’re generally better off paying down debt over saving, since the interest you can earn in the bank is likely lower than what you’re paying on your credit card debt. For other types of debts, however, the best approach is often a combination of the two — putting some money toward saving each month while also chipping away at your debt. If, however, you don’t have an emergency fund, financial experts typically recommend you prioritize saving for that over paying down debt.

Photo credit: iStock/Calvin Chan Wai Meng

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q424-002

Making a DIY budget planner book can require just a bit of time and be a motivating way to take control of your finances. With your own budget planner, you can track your spending, save for big expenses, and come up with a plan to pay off debt. Plus, you can exercise your creativity as you design a book that works for you.

Read on to learn DIY budget planner ideas that can empower you to reach your financial goals.

Why Make a Budget Planner Book?

A budget planner book is an effective tool for tracking your income and expenses.

•   It gives you a big-picture overview of your cash flow while also helping you track your daily spending. That means you’ll likely gain a better understanding of the money flowing into and out of your checking account.

•   With a budget planner book, you can monitor your progress toward both short- and long-term financial goals. For instance, you might use a budget planner to save for a vacation or pay off credit card debt.

•   You can tailor the pages, rows, and columns to suit your particular lifestyle and financial situation. For instance, if you have a full-time job and also a side hustle, you can manage those two income streams and related expenses in a way that works just for you.

•   You’ll have a tangible budget tracker in your hands, which you might prefer to a digital tool such as a budgeting app. Rather than staring at numbers on a screen, you can play around with colorful dividers, stickers, and other materials that suit your tastes.

In these ways, a DIY budget planner book can be a highly useful tool to organize and manage your financial life.

Recommended: 7 Tips for Managing Your Money Better

Review the Essentials of Budgeting

Although budgeting may sound tedious, it can actually be the key to financial freedom. Your earnings and expenses will no longer be a mysterious matter of guesswork. Instead, you’ll have a clear understanding of where your money is going each and every month.

Here are a few tips on how to make a budget that will help you build your planner.

1. Write Down Your Income

Your first step is to determine your monthly income. If you receive regular biweekly paychecks, write down the amount you get and when payday is. Calculate your take-home pay for the month. Note any additional income sources, such as a side hustle, freelance work, or a passive income stream.

2. Track Your Expenses

Next, figure out where your money is going each month.

•   Start by listing out fixed expenses, such as rent or your mortgage payment, subscriptions, and car insurance.

•   Then, estimate your spending on variable expenses, such as groceries, utilities, and transportation. You may need to adjust these amounts occasionally — for instance, your heating bill will probably be a lot higher in the winter than in the summer.

•   As you’re listing out expenses, look for hidden recurring costs, such as a streaming subscription you’re no longer using or a gym membership that’s going to waste. Review your bank account and credit card statements for regular expenses you might have forgotten about.

Along the way, you might identify areas where you’re overspending and can cut back.

3. Make Note of Your Debts

Write down all your debts and monthly bills, such as credit card, student loan, mortgage, or personal loan payments. If you’re motivated to pay off debt faster, you could start sending extra payments to the loan with the highest interest rate.

4. Set Financial Goals

Once you’ve recorded all your income and expenses, take some time to set financial goals. Maybe you want to build an emergency fund, pay off credit card debt, or save for a down payment for a home. If, say, you want to have $10,000 in an emergency fund in two years, you can divide that amount to see that you need to stash $416.67 a month to hit that goal (not including any interest gains). You could then figure out how to finance that: Could you have a staycation vs. a vacation this year? Or give up your gym membership for a while to help pump up that emergency fund?

You can list your goals within your DIY budget planner and track your progress toward them. You might also create some pages for self-reflection, where you can write about your progress and challenges along the way.

5. Choose a Budgeting Strategy

Next, you will probably want to pick a system to help you wrangle this financial information and your aspirations. Here are a few types of budgeting methods to consider as you make your DIY budget planner:

•   50/30/20 rule of budgeting: With this approach, you allocate 50% of your income toward needs, 30% toward wants, and 20% for savings and paying off debt.

•   Zero-based budgeting: With zero-based budgeting, you assign a purpose to every dollar you earn each month until you’re down to zero dollars. For instance, some dollars may go into savings, others may go into debt repayment, and others will go toward living expenses.

•   Envelope budget system: This strategy can be useful for people who prefer to spend in cash or want to curb their credit card use. It involves setting aside cash into envelopes for each item in your budget so you never spend beyond a set amount. You could attach these envelopes to your DIY budget planner. (Note: You can adapt this system for debit card use if spending cash isn’t convenient for you.)

Recommended: 50/30/20 Budget Calculator

Design Your Budget Planner Layout

The beauty of making your own budget planner book is that you can customize it to your preferences. You’ll need the following materials to get started:

•   A binder with dividers

•   Monthly budget calendars and/or templates, which you can find online and print out for free

•   Writing utensils

•   Other materials for color coding or organization, such as sticky notes, markers, and highlighters

Once you have the components of your budget planner gathered, you can determine how to structure it. You’ll need a designated space for your income and expenses, as well as an expense tracker for each month. You can organize this section however works best for you.

•   Perhaps you want to divide your budget planner’s monthly expenses by category, such as household, food, healthcare, transportation, and entertainment expenses.

•   Or you might prefer thinking in terms of fixed vs. variable expenses.

•   You might want to add sections for gift spending at the holidays and in months which contain birthdays of the favorite people in your life.

It’s all about finding out what suits you and will keep you engaged in managing your money.

Some other ideas:

•   You might also create some pages to set goals (and include imagery to motivate you of, say, the new car you’re saving for), journal about your progress, or record other notes that are meaningful for you.

•   If you want to save paper receipts or bills (or use the envelope system of budgeting), you could attach envelopes or extra folders to different pages in your budget planner.

Tips for Consistently Using Your DIY Budget Planner

Designing your DIY budget planner book is only the first step — you also need to use it regularly to stick to your spending plan. Here are a few tips for staying consistent:

•   Set aside time to budget: Your budget planner isn’t going to fill itself out. Consider setting aside a specific time each week to use it. Sunday evenings, for instance, can be a good time to set goals for the week ahead.

•   Make adjustments along the way: Your budget planner may reveal hidden expenses or blind spots. Don’t be afraid to revise your work along the way as circumstances change. For instance, if you overspend during the holidays, you may want to try some tips for living on a budget to recover, such as dining out less or putting your gym membership on hold and trying free classes on YouTube. You can track your progress in your planner and write in motivational messages or mantras, if you like.

•   Look for ways to increase your income: After a certain point, you can only cut expenses so much. If you want to speed up progress toward your financial goals, you might consider ways to make more money, such as working a side hustle, applying for a promotion, or training for a new, more lucrative job.

•   Set SMART goals: One of the most common budgeting mistakes is setting vague, uninspiring goals. Use the SMART framework to set meaningful goals. This acronym means your goals must be specific, measurable, achievable, relevant, and time-bound. For that last one, it can be helpful to set both short- and longer-term goals. You’ll likely feel a sense of pride and accomplishment as you check off the near-term ones, which can fuel your progress on ones that are farther out.

As you get used to working consistently with your DIY budget planner book, it can be a helpful and satisfying ritual that anchors your financial life and progress.

The Takeaway

Creating a DIY budget planner can help you manage your finances in a way that works best for you. You’ll have a tangible tool for tracking your monthly income and expenses, as well as setting goals and tracking your progress. Plus, you’ll have full control over the design, layout, and organization of your budget, which can help you adapt and stay motivated along your financial journey.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How often should I update my DIY budget planner?

Update your DIY budget planner frequently at the beginning to ensure it aligns with your spending and savings habits. You might want to check in with it weekly or at least monthly to track your finances, and then see how often suits you going forward. You’ll also want to update it whenever you have a change in your status, savings goals, expenses, or income (say, if you get married or divorced, have a baby, buy a house, or get a raise).

Can I use a digital template for my DIY budget planner?

You can use a digital template for your DIY budget planner, customize it to meet your needs, and then print it out. Some tools that offer free templates include Google Docs and Canva. You can also purchase budget planner templates on a site like Etsy.

What are some creative ways to decorate my budget planner?

With a DIY budget planner, you can organize and decorate it however you like. You could use colorful markers, dividers, stamps, illustrations, stickers, or other materials to jazz it up. Another DIY budget planner idea might be to include a journaling section where you can reflect on your goals and your spending and saving habits. Make sure to keep your budget planner functional, however, as organizing and tracking your expenses is the top priority.

Photo credit: iStock/tacojim

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q424-001

Buying a house is a major step, and planning to purchase a home can be a lot of fun. You get to figure out where you’d hang your favorite artwork, plant a vegetable garden, put the PlayStation — and maybe contemplate taking on some DIY projects yourself.

But there’s another, more nuts-and-bolts aspect to your pursuit of the American Dream: how to budget for a house. Most people in the U.S. are homeowners, with the latest Census data revealing that 65.6% had attained this status in the second quarter of 2024. So that’s a good indicator that buying your own home is within reach.

Doing so will likely require you to be smart about your finances, both as you save and then take on the responsibility of owning a home. To help you be successful in this pursuit, read on for the intel you need, such as:

•   How do I know how much house I can afford?

•   What are the costs/fees to consider?

•   What will my ongoing costs be?

•   How can I budget for a house?

Up-front Expenses

First, consider how much you would have to fork over if you find that perfect center-hall Colonial or loft-style condo. Once an offer on a new home is accepted, there are certain costs the buyer needs to pay right off the bat and, in most cases, out of their own pocket. These are called up-front expenses. Here are a few to prepare for as you consider how to budget for a house:

Down Payment

You may have heard of the traditional 20% down payment guideline, which helps you avoid paying private mortgage insurance (PMI) on applicable loan programs. Additionally, a higher down payment can sometimes result in better mortgage loan terms (such as a lower interest rate) which may translate into lower monthly mortgage payments.

Yep, it’s a lot of money to try to save, but if you can swing it, in the long run, applying a 20% down payment will likely save you from paying thousands of dollars in additional mortgage interest over the life of the loan. Can’t pull together that big a chunk of change? Look into your options for a mortgage lender with lower or no down payment. Some options:

•   The minimum down payment for a first-time homebuyer on a conventional loan can be as low as 3%. You may also need a certain credit score of, say, 620, to qualify for this kind of mortgage.

•   An FHA government loan that is open to everyone typically requires a down payment of at least 3.5%.

•   Veteran VA loans or government USDA loans may allow eligible borrowers to finance up to 100% of their home’s cost. In other words, no down payment is required.

It’s worth noting that, regardless of the size of your down payment, buying may still significantly reduce your overall monthly expenses, compared to your current rent and real-estate market conditions.

3% to 5% Closing Costs

You can likely expect to pay an estimated 3% to 5% of your home price for closing costs, and should save accordingly. For example, if you buy a home that costs $300,000, you may be required to pay between $9,000 and $15,000 in closing costs.

Worth noting: Some costs are fixed and not tied to the price. In these cases, the percentage can be higher for the lower range and lower for the higher purchase price range.

What exactly comprises closing costs? This can be bank charges like origination fees and any points you may have purchased to buy down your interest rate. There are also costs like the appraisal fee, a title search, and others.

Keep in mind that there are alternatives to paying the closing costs out-of-pocket, such as requesting a seller credit, requesting a lender credit, or tapping an applicable down payment assistance program. These can help you minimize this expense.

Moving Costs

Don’t forget when budgeting for buying a house that you will need funds to actually move in. Unless you’re lucky enough to have a generous pal with a van, you are probably going to have to hire a moving company when it’s time to get settled in your new home. The average cost of moving the contents of a three-bedroom home 1,000 miles is $4,800 according to research by U.S. News & World Report.

These costs can vary widely, of course. If you are moving with just a bedroom’s worth of furniture versus a whole house, your price tag will be lower. It’s wise to comparison-shop for moving companies and factor this expense into your own budgeting for a home move.

If you are moving for work reasons, check with your company to see if it offers a relocation package to help cover some or all of the moving costs.

New Furniture and Appliances

Your new house may not have the same dimensions and style of your old house. That could mean that you need to buy new furniture and appliances. When budgeting for buying a house, you might want to talk to friends or relatives who have moved recently and inquire about unexpected expenses as well. For example, it’s not uncommon when you move to have to purchase such items as new locks, shower rods, and window treatments. These can add up quickly.

You might want to start a savings account for these types of purchases — some of them may be unexpected and costlier than you imagined.

Recommended: First-Time Homebuyer Guide

Ongoing Expenses

Now that you’ve figured out the details related to the actual purchase, consider the expenses that will accrue once you are a homeowner. This is a very important step when budgeting for buying a house. These recurring charges are a vital part of the calculations of how much home you can afford.

Monthly Charges

First, consider how much you’ll be spending every month on your monthly mortgage payment and related costs. PITIA (principal, interest, property taxes, homeowners insurance, and other assessments) is an acronym describing all the components of a mortgage payment. Here’s how it breaks down:

•   P: The principal is the “meat” of the monthly payment amount — paying down the principal will reduce the loan balance.

•   I: Interest is what you are charged for borrowing the money.

•   T: Taxes refer to your property taxes.

•   I: This “I” refers to insurance. This includes both your homeowners and mortgage insurance, if applicable.

•   A: The other assessments refer to things that may be applicable to the home you purchase such as homeowners association dues, flood or earthquake insurance, and more.

HOA Dues

HOA stands for homeowners association. These dues usually apply to a condo, co-op, or property owned in a planned community.

The charge is usually monthly (but it could also be charged quarterly or annually), and it typically goes to maintaining the community (landscaping, garbage collection, repairs, and upgrades).

Before purchasing a property with HOA dues, it can be important to ask the Homeowners Association for a complete HOA questionnaire. With this in hand, you can view how healthy the association is, whether there is any outstanding litigation due to structural or other issues, etc. These could mean increased costs down the road.

Maintenance and Lawn Care

Your budgeting probably won’t stop once you’ve moved and settled into your new home. Expenses will likely continue to knock on your door — landscaping, roof repair, and water heater replacement are just a few items that might require ongoing financial consideration.

You may want to budget for 1% to 4% of the cost of your home in maintenance each year to pay for these expenses. However, deferred maintenance costs may require more funding, depending on the age, quality of construction, where you live, and more.

Pest Control, Security, Utilities

The cost of electricity, gas, water, and internet services differ from market to market. This is also true with pest control, and services that help ensure your home is secure and safe. You could find yourself paying more (or even less) for these services in your new home.

How Much House Can You Afford Quiz

Planning Ahead

So now that you understand the costs associated with homeownership, whether they are one-time or ongoing, you can get to work on how to budget for a house.

Ideally, you want to cover the homebuying costs and then be able to afford your monthly carrying costs without racking up debt. The standard advice is that your monthly housing expenses should account for up to 28% of your monthly pre-tax income. Given how expensive some housing markets can be, it’s not uncommon to find people spending more than that right now.

Here, some advice on figuring out what you can afford.

Target Mortgage Costs

Do your research on the different types of mortgage loan programs. Determine what your price range is given the current interest rates. Find the programs that may best suit you, so you’ll feel confident you can bid and afford a home once you have your down payment saved. Don’t forget to factor in those other PITIA expenses mentioned above as you think about your own monthly income and cash outflow when you’re a homeowner.

Build a Budget

Once you have these costs calculated, you can then start budgeting for buying a house. You’ll want to accumulate your down payment, while taking care of current bills and other financial obligations, of course.

•   Create a line item budget. You’ll want to note how much money you have coming in and how much goes out toward your needs (housing, food, medical expenses, debt repayment). Then you’ll see what’s left for your wants (think travel, dining out, clothes, entertainment) and start saving it, whether for your future home or retirement.

   Don’t skimp, though, on establishing an emergency fund. In a pinch, these funds can keep you from using your credit card and running up even more debt.

•   Assess where you can save more. To ramp up your savings for your house, look for ways to economize. Could you drop a subscription or two to streaming channels, or perhaps eat out less often?

   Also see what you can do to avoid high-interest credit card debt, which can take a bite out of anyone’s budget. You might want to take advantage of a zero-interest balance transfer credit card offer, or investigate whether a lower-interest personal loan could help you pay off your debt and save money.

•   Use automatic transfers. Help yourself hit your savings goals by automating payday transfers from checking to savings. That way, you won’t see the cash in your account and be tempted to spend more.

•   Bring in more moolah. If the numbers aren’t adding up to bring your homebuying plans within reach fast enough, consider using windfalls (a tax refund, a bonus at work, a birthday gift of cash from a relative) to plump up your savings. Also think about ways to bring in more income, whether by asking for a raise or pursuing a side hustle.

The Takeaway

Budgeting for buying a house requires thinking about both short-term costs, such as a down payment, closing costs, and moving expenses, as well as long-term costs such as homeowner’s insurance and maintenance expenses. It’s wise to look at both before you pursue a mortgage preapproval or make an offer on a home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How much money should you save before buying a house?

If possible, you should save enough money for a down payment on a house in the price range you’re thinking about. But you don’t need to make a 20% down payment — many homebuyers put down less, and some government programs will allow you to buy with no down payment at all. You’ll also want to have closing costs on hand (3% to 6% of the home’s price). And it’s wise to always have an emergency fund in case of an unexpected setback.

How much do I need to earn to afford a house?

How much you need to earn to afford a house depends on the housing market you’re looking in and the area’s overall cost of living. The national average salary is $63,795 and at that salary you may be able to afford a home priced at $180,000. Use a home affordability calculator to explore the numbers for your specific situation.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q324-053

It’s a good idea to regularly review your credit report. Doing so can help ensure that the information used to calculate your credit scores is accurate and up to date. It can also alert you to fraud or identity theft.

Unfortunately, understanding your credit report can sometimes feel like a challenge — especially if it’s the first time you’re doing it. Below, learn how to read a credit report, as well as highlight some common credit report errors to look out for.

What Is a Credit Report?

Your credit report contains a large amount of information about your financial life and payment history. If you have credit cards or loans, for instance, those accounts and how you pay them are included in your credit report. Often, you’ll have more than one credit report, as creditors are not required to report to every credit reporting company.

Credit card issuers and lenders can pull these reports and review them in order to determine your creditworthiness. They will rely on this information to make a decision on whether to loan you money, as well as the terms they’ll offer if they do.

Who Compiles Credit Reports?

Credit reports are created by three national credit reporting agencies: Equifax®, TransUnion®, and Experian®. The information the credit bureaus compile in credit reports comes from creditors — like lenders, credit card companies, and other financial companies — that submit information on your accounts and payment history to the bureaus.

Who Can See Your Credit Report?

Your credit report is accessed whenever a lender (or an employer or landlord) conducts what’s known as a hard credit inquiry. This is when a business accesses your credit report to make decisions about your creditworthiness, likely in order to make a decision about extending a loan (or a job or housing).

Hard credit inquiries will appear on your credit report, so you should recognize any credit inquiries that appear. They may also subtly affect your credit score. Multiple inquiries in a short period of time may signify to lenders that you’re seeking multiple loans, which may bring up concerns about your financial stability.

Your credit report can also be accessed by consumers (like you). The Fair Credit Reporting Act requires each of the credit reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months. As of early 2025, each of the big three credit bureaus is providing weekly free credit reports at AnnualCreditReport.com. Your credit score will not be impacted when you request a copy of your own credit report.

How to Get a Credit Report

As noted above, you have the right to ask for one free copy of your credit report from each of the credit bureaus, at least annually and possibly weekly. There are a few ways you can request it:

•   By visiting AnnualCreditReport.com

•   By calling (877) 322-8228

•   By downloading and filling out the Annual Credit Report Request form, and mailing it to the following address:

    Annual Credit Report Request Service

    P.O. Box 105281

    Atlanta, GA 30348-5281

You also can request credit reports from consumer reporting companies, though these may charge a fee. Additionally, you’re eligible to request free reports under certain circumstances, such as being denied credit or due to potential inaccuracies because of fraud.

Also know that you can only check your own credit report — checking someone else’s credit report is generally illegal.

Recommended: What is a Charge Card?

Reading Your Credit Report

When you get your credit reports, it’s a good idea to read each section closely. Here’s a rundown of the sections you’ll typically find included, so you’ll know what to expect and thus how to read a credit report.

Personally Identifiable Information (PII)

This section of the report is used to identify you. It contains basic information like your name, address, and place of employment. You may also find previous addresses and employer history listed here. Your employment history doesn’t affect your credit score. Rather, it’s included on your credit report only to verify your identity.

When scanning this area you’ll want to make sure that your name, address, and employer match up. Any incorrect or unfamiliar personally identifiable information (like company names you don’t recognize or employers you never worked for) may be a sign of identity fraud.

Credit Summary

This section summarizes information about the different types of accounts you have, including credit cards and lines of credit, mortgages and other loans, and any accounts that have been sent to collections. For each account, your credit report will include the date the account was opened, its balance, its highest balance, the credit limit or loan amount, payment status, and payment history.

As you read this section, make sure that all the information looks familiar. It’s not unusual for a credit report to have slightly dated information, such as a higher balance because you just paid off a bill this month. However, all information should seem recognizable. In particular, you’re looking for:

•   Unfamiliar accounts

•   Late payments that do not align with your records

•   Balances that do not match your records

Recommended: What is the Average Credit Card Limit?

Public Records

The information in this section is pulled from public records and may include debt collections or bankruptcy information.

If you missed a credit card payment due date and have any debt collections and bankruptcy on your record, it’s important to remember that they won’t stay there permanently. The following statutes of limitations apply to different types of debt, restricting how long the information will remain on your credit report:

•   Chapter 13 bankruptcy: Removed seven years after the filing date

•   Chapter 7 bankruptcy: Removed 10 years after the filing date

•   Late payments: Removed seven years after they occur

•   Payment defaults: Removed seven years after they occur

If you see information that’s not familiar, you’ll want to flag it, since this could be a sign of identity theft. You may also want to flag any information that is still on your credit report after the statute of limitations has expired.

Credit Inquiries

Credit inquiries list all parties who have accessed your credit report within the past two years.
These could be from lines of credit you opened, such as applying for a credit card, or from applying for a loan.

Both hard inquiries and soft inquiries will appear, though they have different impacts on your credit — hard inquiries will affect your credit, whereas soft inquiries will not. You can distinguish the two types of inquiries based on how they appear on the report:

It’s a good idea to make sure you recognize any recent credit inquiries, as they can be a red flag for identity theft.

Why Credit Reports Are Important

Your credit report can play a critical role in determining your financial future. That’s because creditors will refer to your credit report to decide whether to approve you for a loan or a credit card and, if so, what terms they’ll offer you, including the interest rate. In other words, your credit report will help determine whether you’ll get the auto loan you need to purchase a new car or the mortgage necessary to purchase a home. And if you’ve used a credit card responsibly, that could help open the door to additional lines of credit.

It’s not just creditors looking at your credit report either — landlords, insurers, potential employers, and even phone and cable companies may look at your credit report as part of their vetting process. This is why it’s so important to understand what information your credit report contains, so you can know what information these potential parties can learn from viewing it.

Recommended: How to Avoid Interest On a Credit Card

What Information Is Not Found on Your Credit Reports?

One surprising piece of data that you may be surprised to find out credit reports do not include is your credit score. Beyond that, your credit report will not contain the following information:

•   Salary

•   Employment status

•   Marital status

•   Spouse’s credit history, if applicable

•   Assets, such as bank account balances, investments, or retirement accounts

•   Any 401(k) loans

•   Public records outside of bankruptcy

•   Medical information

•   Expired information

•   Race or ethnicity

•   Religious beliefs or information

•   Political affiliates

•   Disabilities

What To Do If You Find Errors on Your Credit Report

None of the information on your credit report should look unfamiliar. In fact, one of the main reasons you want to read your credit report is to make sure that your credit report matches your records.

But sometimes, there can be discrepancies. If you detect an error on your report, such as a payment incorrectly reported as late, you’ll want to file a formal dispute. You’ll need to dispute credit report errors with both the credit reporting company and the entity that provided the information (such as a credit card company).

When writing a dispute letter, you’ll want to include:

•   A clear explanation of what is wrong in the credit report.

•   Supporting documentation showing the information is inaccurate (such as a copy of a paid bill).

•   A request for the information to be fixed.

By law, the credit reporting company must investigate your dispute and notify you of its findings.

If you notice an error that suggests identity theft (such as unknown accounts or unfamiliar debt), it’s a good idea to sign up with the Federal Trade Commission’s (FTC’s) IdentityTheft.gov site in addition to alerting the credit bureaus. The FTC’s tool can help users create a recovery plan and figure out next steps, which may include placing a security freeze on your accounts.

The Takeaway

It’s easy and free once a year (or more often) to gain access to your credit reports from the three major bureaus. Reviewing your credit report can give you a chance to correct any errors, and make sure your credit report is an accurate representation of your financial situation. It can also alert you to any fraudulent activity. In addition, reading your credit report can help you understand how creditors see you as a borrower and identify any potentially problematic information that may negatively impact your creditworthiness.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

When should you check your credit report?

The Consumer Financial Protection Bureau (CFPB) recommends checking your credit report at least once a year to ensure there are no errors and that all information is up-to-date. You might consider checking them even more frequently than that though to have the most accurate picture of your current financial situation.

What do the numbers mean on a credit report?

Your credit report may contain a variety of different numbers. This can include your name identification number, your Social Security number, the IDs for addresses associated with your credit, phone numbers, account numbers, and more. It can help to go through section by section if you’re unclear as to what a particular number means.

What should I look for on a credit report?

When reading your credit report, you’ll want to look out for any changes to your personal information, such as changes to account details, inquiries, or data available in public records. Keep your eye out for any errors or anything that otherwise seems amiss, as this could be a sign of fraud.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOCC-Q125-007

Buying a home is exciting, but coughing up the down payment can be a downer. That’s where down payment assistance enters the picture. Government and nonprofit programs help unlock the door to homeownership for qualified buyers.

It makes sense to put down as much as you can comfortably afford on a down payment. The more you put down, the less you’ll be borrowing, which translates to lower monthly payments and less interest paid over the life of the loan. But many people put down less — in some cases far less — than 20% of the home’s purchase price, the amount often recommended to buyers.

In an April 2024 SoFi survey of 500 people intending to purchase a home, almost a third of respondents (30%) said they were planning to put down between 11% and 20%. Almost one in five (19%) said they would put down 6% to 10%. Ten percent of buyers were aiming for a 5% down payment or less, and fully 7% of people were exploring no-down-payment options. First-time buyers who finance their home are especially likely to have a lower down payment, according to data from the National Association of Realtors®.

Down Payment Defined

Depending on their financial situation, homebuyers may qualify for down payment assistance from the government or a private entity.

Down payment assistance programs come in several forms. Some offer homebuyers loans and grants that can be applied directly to down payments and, in some cases, help with closing costs, too.

The down payment — which covers the upfront “out of pocket” cost of getting a mortgage — is usually made at the mortgage closing and can be paid with a check, cashier’s check, or electronic payment.

The down payment covers a reasonable percentage of the total home purchase price, with the mortgage covering the remainder. Lenders typically won’t approve a mortgage loan unless the borrower pays upfront cash — anywhere from 3.5% to 20% in most cases — against the total price of the property.

💡 Quick Tip: Thinking of using a mortgage broker? That person will try to help you save money by finding the best loan offers you are eligible for. But if you deal directly with an online mortgage lender, you won’t have to pay a mortgage broker’s commission, which is usually based on the mortgage amount.

Homebuyer Assistance Programs and Qualifications

If a first-time homebuyer can’t afford a down payment, that opens the possibility of financial assistance.

The programs that tend to provide the most financial assistance to homebuyers — state and federal governments and local, regional, and national nonprofits — will likely need an applicant to clear hurdles in order to qualify for down payment help.

These criteria usually lead that list:

•   The three-year rule. The buyer must not have owned a home in the past three years. In most scenarios, government agencies and private charities deem anyone who hasn’t owned a home in the previous three years, even a repeat buyer, a “first-time home buyer.”

•   Must be for a primary home. Homebuyers should be clear if the money is going to the purchase of a primary residence. If the home is an investment property designed to draw rent, financial assistance providers usually won’t issue a green light on funding.

•   Income limits. First-time homebuyers may have to meet income limits. The buyer may also have to keep the home price below a specified limit.

•   Funding caveats. Depending on the funder, the first-time homebuyer may have to take a homebuyer education course and may be asked to contribute some money to the down payment.

New homebuyers looking for financial help — and who qualify for that help — can get financial aid from a variety of sources, both public and private.

The help can be substantial.

According to a report from the Urban Institute, up to 51% of potential homebuyers residing in the report’s U.S. metropolitan areas studied would qualify for some form of home down payment assistance. Upon applying, those homebuyers would be in line to receive between $2,000 and $39,000.

Yet in SoFi’s recent survey, only 38% of potential homebuyers who said not having an adequate down payment was their biggest challenge had explored down payment assistance programs. Actively looking for down payment assistance could be a good move. When that search begins, the following funding sources may be a good place for homebuyers to start.

Recommended: First Time Homebuyer Guide for 2023

HUD, the Gatekeeper

A good source for state and nonprofit home down payment assistance is the Department of Housing and Urban Development, or HUD.

HUD is a federal gatekeeper, steering homebuyers to various state and nonprofit programs and offering home buying and down payment advice from HUD home assistance counselors.

Each state may have different rules and requirements, so it’s a good idea to talk to either the state agency directly or to a qualified advisor through the HUD housing counselor portal.

Federal, State, and Local Government Grants

Government grants might be the optimal form of down payment assistance, as it’s free money. Grants usually come from federal, state, or local governments and nonprofit groups.

Each government agency or charitable group has its own rules for down payment assistance grants, but in general, you have to pass an eligibility test (the common criteria are listed above) to qualify.

Again, HUD does not offer direct grants to individuals but works through local governments and nonprofit organizations to make financial assistance and counseling available.

💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

Federal Government Loans

While technically not deemed direct down payment assistance, U.S. government-insured housing loans consist of low-interest loans to new homebuyers that enable them to make lower down payments, thus making it easier to afford both a home loan and a down payment.

Federal home loans usually come from three agencies:

The Federal Housing Administration. The FHA provides loans from private lenders to qualified homebuyers. The primary qualifier is a FICO® credit score of 580 or above. A borrower with a credit score of 500 to 579 who brings a 10% down payment to the table may also qualify for an FHA loan. In SoFi’s survey, only 49% of homebuyers had heard of FHA loans, yet these can be a great solution for buyers.

U.S. Department of Agriculture. The USDA offers direct home-buying assistance to rural homebuyers. Loans enable qualified homebuyers to purchase a home with no down payment. The home must be in a qualified rural area, and borrowers’ adjusted annual income cannot exceed 115% of the median income in the area, among other criteria. These loans, too, can fly under the radar with shoppers. In SoFi’s survey, only 4 in 10 buyers (41%) had heard of USDA loans.

There is no minimum credit requirement for a USDA loan, but applicants with a credit score below 640 are subject to more stringent guidelines to qualify.

Department of Veterans Affairs. The VA provides home purchasing assistance to current members of the armed forces, military veterans, and eligible spouses of deceased U.S. military members. Similar to a USDA home loan, a VA loan requires no down payment.

Applicants must meet the VA’s — and the lender’s — standards for credit and income, and be purchasing a primary home.

Forgivable Loans

These loans come from lenders, usually in two forms: deferred payments and forgivable loans.

Forgivable loans are basically second mortgages that borrowers don’t have to repay if they remain in the primary home for a specific time period (for example, 10 years).

Forgivable loans usually have a 0% interest rate, making it easier to afford a home down payment.

State Down Payment Assistance

Assistance programs vary by state. Still, some commonalities exist — especially the urgency to help economically struggling homebuyers afford a home down payment.

These states are examples of that:

Arizona. By and large, homebuyers in most Arizona counties can apply for home down payment assistance through the state’s Department of Housing Home Plus Program.

Homebuyers will need a FICO® credit score of 640 or higher and an annual income of $126,351 or less. Additionally, the purchase price of the home can’t be higher than $371,936.

Florida. The Sunshine State offers home down payment assistance programs via Florida Housing Finance Corp.

•   HFA Preferred and HFA Advantage PLUS Second Mortgage. These down payment and closing cost programs offer 3%, 4%, or 5% of the total loan amount in a forgivable five-year second mortgage.

•   Florida Assist. Eligible homebuyers receive up to $10,000 through an interest-free second mortgage. The money doesn’t have to be paid back unless the homeowner sells or refinances the property.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Government and nonprofit funding are the primary vehicles for down payment assistance, but homebuyers may also seek down payment help from family and friends, retirement and investment funds, or even microlenders.

However a buyer approaches home down payment assistance, the keys are planning, research on available programs, and a disciplined approach to budgeting.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.