Saving for a Down Payment in the US — Programs, Accounts, and Timeline

## How much down payment do you need? - **Conventional loan:** 3–20%. Below 20% requires PMI. - **FHA loan:** 3.5% (credit score 580+) or 10% (500–579) - **VA loan (veterans):** 0% down - **USDA loan (rural areas):** 0% down For a $400,000 home, 3% down = $12,000 vs 20% down = $80,000. The PMI on 3% down (~$200/month) adds up but lets you buy years earlier. ## Down payment assistance programs Many states and cities offer DPA programs: grants, low-interest loans, or forgivable loans for first-time buyers. Search your state's housing finance agency. Income limits apply. Programs in California, Texas, and Florida have been particularly active. ## FHSA — Canada's equivalent If you're Canadian reading this, look up the First Home Savings Account (FHSA) — $8,000/year tax-deductible contribution that can be used tax-free for a first home. It's one of the best new financial tools introduced in Canada in decades. ## Savings vehicle options - **HYSA:** 4–5% APY, fully liquid - **CDs:** 4.5–5.5% for 6–12 months, less liquid - **I-bonds:** Inflation-protected but limited to $10,000/year - **Short-term Treasury ETFs:** 4.5%+, very low risk