Plan 4 is basing your plan of attack off the likely purchase price and timeframe. Let’s assume you will need to buy in three years and homes in your area for what you want to buy will most likely be about $600,000. You need to reverse engineer this by multiplying the 600k by .035 (3.5% for an FHA loan down payment)to give you $21,000 when then divided by 36 months for three years. This is the down payment needed ($7k monthly) but you also need to cover your cash to close of closing costs and loan fees. On average, your total cash needed to close could be 6% of the total purchase price. In this case, it’d become $36,000. That’s $1,000 per month needed to purchase in three years and have enough to sign and be approved. That is not doable for many families which is why it’s so important to run the numbers and know what you need, how to structure your deposits, and where you can make adjustments in your plan. Maybe you need lifestyle changes, more time, different areas or needs, or you need to try and buy something at a lower price that might be a fixer, three bedrooms instead of four, etc. Plan 4 is more aggressive for some buyers but it’s also specific and strategic more than the other plans on previous posts.

Plan 5 is for buyers who have the means and tenacity to be aggressive in their savings path and have the resources to do so. I have multiple versions of an accelerated savings strategy below for different budgets, starting with the most affordable:

The third accelerator option I suggest is $200 per week. There are 52 weeks in a year so that gives you over $10,000 at the end of each year! If you can afford to do so, then of course this is what I recommend. If you’re using the Roth IRA strategy with your savings, remember that the 2025 limits are $7,000 unless you are at least 50 years old so the rest needs to go into a CD or HYSA.

Obviously these particular plans will not work for everyone if their income can’t support them but if you are lucky enough to do so, this is a great way to boost your income and stop spending money on other things that aren’t essential to help you save for a down payment on a house.

I’m a licensed real estate agent and mortgage loan originator and I can refer you anywhere in the country or help you if buying or selling in CA.

Call 📞, text, or email 📧 (760)625-6836 or agentofparadise@gmail.com