Not everyone has a huge stash of money saved up to buy a home.

For most people looking to purchase a home, it’s simply not feasible to wait until they’ve at least saved up for a down payment. If you want to buy a house but feel like you don’t have enough saved up - you’re not alone! This guide is tailored specifically for you.

We will provide you with information on how much you should save for a downpayment (and where to get assistance if you still don't have enough!).

A quick disclaimer: Did you know that you can skip the rest of this blog if you prefer to have this done for you by a professional - free of charge?
If you're on the hunt for the best downpayment assistance without all the headaches, we've got you covered! Let our expertise and experience get you an UNFAIR advantage on the market, whether it’s your first time buying -or not! Head on to www.thewilliamsteam.com/connect or contact us at (504) 233-3374.


If you’re still curious (or do you want to take a look at your options yourself - for now), then get your reading mode on and jump right in!

Understand the Cost of Homeownership in Louisiana.

Before you start saving for a downpayment, it's important to understand the overall cost of homeownership in Louisiana.

This includes not just the downpayment, but also other expenses such as closing costs, property taxes, homeowners insurance, and maintenance costs. By having a clear understanding of these costs, you can better determine how much you need to save for a downpayment and budget accordingly.

Here’s another great article to determine if you are ready for a new house, and the unexpected expenses and maintenance that can go along with it

Determine Your Target Home Price.

The first step in determining how much you should save for a house downpayment in Louisiana is to determine your target home price. Consider factors such as the location, size, and condition of the home you are looking to purchase. 

Research the current housing market in your desired area to get an idea of the average home prices. 

This will give you a starting point for calculating your downpayment savings goal. Keep in mind that most lenders require a downpayment of at least 3% to 20% of the home's purchase price, so factor that into your calculations as well.

DISCLAIMER - Before you set your sights on a price and a house, it is critical to seek professional advice in determining if the price corresponds to your desired home, so you are not surprised when you see listing prices that fall short of your expectations.

Calculate Your Down Payment Percentage.

Once you have determined your target home price, you can calculate the down payment percentage you will need to save. This percentage will depend on the requirements set by your lender and your personal financial situation. As mentioned earlier, most lenders require a down payment of at most 20%, but it can go down to just 3% of the home's purchase price! 

In order for you to figure out your down payment percentage, divide the amount you plan to save for the down payment by the target home price and multiply by 100. This will give you the actual percentage you need to save. 

For example, if you plan to save $5,000 for a down payment on a $150,000 home, your down payment percentage would be around 3.33%.

Consider Your Down Payment Advantages

If you're looking to save for a down payment, it's worth considering down payment assistance programs in Louisiana. 

These programs are designed to help individuals and families with limited income or savings to get a chance to offset the upfront costs of buying a home. There are various down payment assistance programs available, such as the Louisiana Housing Corporation's Down Payment Assistance Program and the CDBG Program

These programs provide eligible homebuyers with grants, loans, or forgivable loans to help them cover the difference between their savings and the required down payment. 

It’s always a great idea to look into these to see if you are eligible and how they can help you accomplish your homeownership goals.

Start Saving and Budgeting for Your Down Payment.

Now that the game plan is clear, it’s now time to execute the most important part of the downpayment process - saving enough money for it (If it’s necessary). Saving for a down payment can be a daunting task, but it is certainly doable with careful planning and budgeting. 

Begin by calculating how much you will need to save for your desired down payment amount. The average down payment in Louisiana is between 10% and 20% of the home's purchase price. However, based on the current market, it’s not uncommon to get low or no downpayments(from 0 to 3%) based on the seller’s preferences and your downpayment advantage.

Create a budget that allows you to save a portion of your monthly income once you've set a goal amount. Cut unnecessary expenses and consider ways to supplement your income, such as taking on a second job or freelancing. Set up a separate savings account for the deposit and automate your savings with scheduled withdrawals from your checking account. Maintain your discipline and commitment to your savings plan, and you'll have enough saved up to make your dream of homeownership a reality before you know it!

Before you make hasty choices and save up for a ridiculously enormous amount that will cause you to miss out on current house prices, it is always a good idea to look into all options and communicate with a real estate agent in New Orleans, Slidell, or anywhere in Louisiana to get you on the best path possible. 

If you're confident in moving with the sale, it's critical to hire a realtor to walk you through the home-buying process so you don't get lost along the way. It doesn't matter if you've been doing this for a long time or if you're just getting started - it's always a good idea to seek advice from a professional who is always up to date with the latest trends.

See how the pros handle it while you daydream about decorating your new place.