Buying a Home with Limited Savings

One of the most common reasons people delay buying a home is because they think they need tens of thousands of dollars saved for a down payment.

In reality, there are loan programs and assistance opportunities designed to help qualified buyers purchase a home with less money upfront.

What Is a Down Payment?

A down payment is a portion of the home’s purchase price that you contribute when purchasing a home.

Many buyers are surprised to learn that a 20% down payment is not always required.

Assistance Programs May Be Available

Some first-time buyers may qualify for programs that help with upfront costs.

For example, eligible first-time homebuyers may qualify for programs such as the Philly First Home Program, which provides up to $10,000 in down payment assistance. Parke Bank’s HomePLUS Program also offers eligible buyers the opportunity to purchase a home with as little as 3% down in select Philadelphia neighborhoods.

Start Saving Small

Even modest savings habits can add up over time.

Consider:

• Setting aside a portion of each paycheck
• Saving tax refunds
• Reducing unnecessary subscriptions
• Creating a dedicated home savings account

 Don’t Assume You Need Years to Save

The best way to understand your options is to speak with a mortgage professional who can review programs available to you and explain what may be possible based on your individual situation.