Saving for a down payment is a major milestone on the path to Southern Home Ownership. While many believe 20% is required, it’s possible to buy a home with much less — as little as 3% for conventional loans or 3.5% for FHA loans. However, putting down more can reduce your monthly payments and eliminate the need for private mortgage insurance (PMI).

To determine how much to save, consider your target home price and the type of loan you’ll use. Don’t forget to budget for closing costs, which typically add another 2% to 5% of the purchase price. Building a solid down payment fund takes time and discipline, but even small, consistent contributions can grow. Opening a dedicated savings account, setting monthly goals, and reducing unnecessary expenses can get you there faster. Having your down payment ready makes your journey to home ownership more attainable and financially secure.