I’ve had so many conversations with young people who want to own a home. As exciting as it might be, scraping together hundreds of thousands of dollars for a downpayment isn’t possible for those who have student loans, credit card debt, or salaries that help them just make ends meet. For those who do have a downpayment, buying a home in the year 2022-2023 means accepting very high interest rates, which add thousands of dollars to your loan amount.
As a current homeowner, I feel that finding and closing on the right home for you takes a lot of hard work and a little bit of luck. When Kurt and I purchased our first apartment, we were making pretty good salaries, but not good enough to pick out any home we wanted. It took years of planning, strategizing and discipline to close and flip that home.
Even if you’re starting with limited funds, it is possible to save for a down payment. Below are some steps athletes can take when they have little money in the bank, but want to achieve their goal of homeownership.
10 Ways to Save for A Home with Limited Money
Set realistic goals. Start by determining how much you need for a down payment. Most mortgage lenders recommend saving at least 20%, but this can be a hefty amount when you’re not making that much money. As first-time home buyers, there are lending programs that accept lower down payments, but you’ll have to pay ‘PMI’ or private mortgage insurance.
Create a budget. Once you know how much you’ll need to save, evaluate your budget to have a clear understanding of your income and expenses. With the use of a budget, outline your monthly income and track your spending. Can you cut back on travel? Maybe downgrade your gym subscriptions or memberships? Cutting back can help you allocate that money towards a down payment fund.
Open a seperate savings account. Saving for ‘all of the things’ in one account might mean you accidently dip into your down payment fund for other purposes. Instead, open a separate savings account to keep your savings organized and on track.
Increase your income. Consider ways to boost your income, which might include starting side-hustle, working a part-time job or doing seasonal work. Every extra dollar can be put towards your future home.
Cut unnecessary expenses. What can you really cut out? For me and Kurt, it was so convenient to grab a bite in the village after work, especially after work. We both worked at NYU at the time, we’d workout before we came home, and could grab food before we went home. The only catch-we would spend so much unnecessary money eating out versus cooking at home.
The same goes with other non-essential expenses. Cancel unused subscriptions, workout at home or outside, and focus on building your down payment fund instead
Take advantage of windfalls. Those nice little surprises like a tax refund, work bonuses, monetary gifts, etc. should go directly into your down payment fund. Saving these monies instead of spending this will help you reach your goal faster
Create automatic transfers. Setting up automatic transfers from your checking account into your savings account each payday will help you consistently save. I find this very helpful because the money is automatically deposited into my separate savings accounts before I have the chance to spend it.
Look into first-time homebuyer programs. There are so many government programs and initiatives designed to help first-time homebuyers. offer grants, low-interest loans, or down payment assistance, helping you bridge the financial gap.
When Kurt and I purchased our first apartment in NYC, we did our research and found a lender that waived all of our closing costs after we took a home-buying seminar with me. This was very helpful because we were able to use that money for moving and renovation costs instead.
Track your progress. Keep tabs on your savings progress and monitor your goals as needed. When we first started saving for a home, we realized we could cut even more and save more than we initially thought. We also made an effort to celebrate a few milestones to keep us motivated and hopeful throughout the process
Be patient. Patience and persistence is key. saving for a down payment when you’re not making a lot to begin with takes a lot of time and discipline.
As athletes, we were so committed and determined to save for that first down payment. Having experience playing the long game- essentially all of those years of training and competing paid off! We transferred that discipline into making it work, even when there were months that we could barely save. Being patient helped us stay on track to becoming homeowners.