Down Payment & Assistance
How can I save for a down payment?
Updated Jul 1, 2026
The short answer
Saving for a down payment usually combines a dedicated savings plan with awareness of the low-down-payment loans and assistance programs that reduce how much you need. Some first-time buyers may also access retirement funds under special rules. Because you do not necessarily need 20% down, knowing your real target — including closing costs and cash to close — helps you set a realistic goal.
Key points
- You may need far less than 20% down.
- Assistance programs can shrink the target.
- Budget for closing costs and cash to close, not just the down payment.
- Special rules may allow certain first-time retirement withdrawals.
Set the real target first
Before saving blindly toward 20%, calculate the actual cash to close for the loan type you expect to use. A smaller, accurate goal is easier to reach and may get you into a home sooner.
Put this to work
Sources
Every claim above traces to a public government source.