Roadmap to Homeownership

There are many down payment assistance programs offered by various Cities, Counties, States, Governmental, and Private entities. Some require repayment, others are grants that you do not have to pay back. But all of them have certain criteria and guidelines that must be followed. Whether its income, neighborhood, household, or employment restrictions, everyone does not fit into the down payment assistance box. For those who do not, it means you have to save. 70% of Americans do not have a budget in writing, and if you do not have a budget, it may not be an easy task to save for a home.

There are several sources you can use for down payment:

  1. Your Tax Return – You’ve overpaid Uncle Sam, and now it’s time to reap your reward.  For a home that’s $100k, you need a minimum of $3000 for down payment
  2. Your 401k – You joined the company Retirement plan, and your employer has matched your contribution, now you have a nice kitty put away for retirement.  There are stipulations that you may borrow from your 401k with minimum penalties, as long as it is to purchase a home
  3. A Gift from a friend or family member – Your rich Aunt decided to bless you with a gift to purchase a home

If you have none of the above available to you, then you will have to buckle down and save for your down payment yourself.  Depending on how well you do, it may take as little as a few months, or a maybe a couple of years.  If you are disciplined, you can totally pull it off.

Now it’s time to get your pen and calculator so we can figure out how long it will take you to save for a down payment:

  • Input Your Information
  • Payment breakdown
  • FHA Financing Breakdown

Input Your Information

Your Information

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Monthly Income

Monthly Debt




The % of income you can realistically save for down payment

Payment breakdown

Total Monthly Debt: $

SUBTRACT your Total Debt from your Gross Monthly Income

Gross Monthly Income: $
Total Monthly Debt: $
Net Qualifying Amount: $

MULTIPLY your Net Qualifying Amount by 43%

Net Qualifying Amount: $
Multiple by 43%: $

Total Qualifying Mortgage Payment

Total Qualifying Mortgage Payment: $

FHA Financing Breakdown

Saving for a Home using FHA financing

Total Qualifying Mortgage Payment

Total Qualifying Mortgage Payment: $

Your Purchase Price

Your Purchase Price:

Down Payment Needed

Down Payment Needed: $

Your Gross Monthly Income x Saving Percentage

Your Gross Monthly Income x Saving Percentage: $

Total Savings Per Month

Total Savings Per Month: $

Total Months it will take you to save for your down payment

Total Months it will take you to save your down payment: