For many buyers, having a down payment can be the biggest roadblock between wanting a home and owning one. You’ve probably heard the old rule: save 20% of the purchase price to avoid private mortgage insurance (PMI) and get the best terms. That’s still terrific advice, if you have the time and the income to stack those savings. But today, with home prices higher and life costs competing for every dollar, the question has shifted from “Can I get to 20%?” to “How can I get there sooner, or buy before I do?”

The good news is, there are more ways to make it happen than ever. From new financing programs to smart savings habits to a few outside-the-box strategies, here are 10 possible methods to bringing homeownership within reach faster.

1. Rethink the 20% “rule”

The 20% down tradition started decades ago when loans were more conservative and PMI (Private Mortgage Insurance, the insurance lenders require when you put down less) was more expensive. But in today’s market, there are perfectly sound mortgages that require only 3% to 5% down, and some even less.

For example:

• Conventional 97 loans (offered by Fannie Mae and Freddie Mac) allow 3% down for qualified borrowers with good credit. 
• FHA loans require just 3.5% down and can be more forgiving on credit scores. 
• VA loans for eligible veterans and active-duty service members offer 0% down with no PMI. 
• USDA loans serve eligible buyers in rural and some suburban areas, also with options that go as low as 0% down. 

Even if you pay PMI for a while, you can usually work with your servicer to cancel it once your home equity reaches 20% as the result of increased home value or your payments to principal or a combination of both . The time it takes to get there can sometimes be shorter than the time it would have taken to save a full 20% up front.

You don’t have to wait for a “perfect” down payment to buy responsibly. Understanding what options you already qualify for can move your timeline up significantly.

2. Use down payment assistance (DPA) programs

Down payment assistance used to be a niche offering. Today, there are quite a number of programs run by state and local housing agencies, nonprofits, and even employers. These can come in several forms:

• Grants (which don’t need to be repaid). 
• Forgivable loans (which convert to grants after a few years of homeownership). 
• Deferred-payment loans (which are repaid only when you sell or refinance).
  

Eligibility usually depends on income, purchase price, or whether you’re buying in a “targeted” community. Some programs even help existing homeowners relocate if they’re buying in an area with stronger job access or schools.

To find them, start with the HUD-approved list of state and local programs or your state’s housing finance authority. Nationally recognized platforms like Down Payment Resource or HomeReady can help identify matches based on location and credit.

These programs aren’t only for first-time buyers. Some define “first-time” as anyone who hasn’t owned a home in the past three years.

3. Tap your network wisely

Not all down payments come from your own savings — and not all outside help needs to be a handout.

• Gift funds from family or close friends are allowed under most loan types, though the lender will require documentation showing the money isn’t a loan. 
• Employer assistance is growing fast. Some companies offer down payment help as a recruitment or retention benefit, sometimes tied to specific lenders. 
• Shared-equity programs (like those offered by companies such as Landed or Home Partners) can co-invest in your down payment in exchange for a share of future appreciation. These require reading the fine print carefully, but they can shorten your wait dramatically if you’re light on cash but have strong income.
  

4. Automate your savings — and make it visual

Saving for a down payment can feel abstract, which makes it easy to postpone. Two small psychological tweaks make a big difference:

1. Automate your contributions. Create a dedicated savings account and route a portion of each paycheck there automatically. Even 3% to 5% adds up. 
2. Label it emotionally. Call it “First House Fund” or “Keys by 2026.” That makes it real, not theoretical.
   

Many banks and apps now let you round up purchases or set recurring micro-deposits tied to spending. You’ll barely notice it, but those pennies compound into serious progress.

If you’re saving jointly with a partner, track your milestones visually — a shared spreadsheet, thermometer graphic, or even a printed goal chart. Behavioral finance research shows visible progress keeps motivation high.

5. Get creative about cash flow

Sometimes, the fastest way to save isn’t by cutting more, it’s by earning differently or rearranging existing money.

• Rent out space. If your current rental allows, sublet a spare room or list short-term stays to bank extra cash directly toward your goal. 
• Sell idle assets. A second car, unused collectibles, or small investments can jump-start a down payment fund faster than gradual saving. 
• Tighten insurance and subscriptions. Review auto, renters, or streaming services annually — even $50 saved a month equals $600 a year toward your down payment. 
• Tax refund redirect. Earmark any refund or bonus straight into your house fund before it lands in your checking account.
  

These micro-moves rarely feel dramatic, but they’re the kind of financial habits that move timelines from “someday” to “soon.”

6. Consider nontraditional pathways to ownership

A few creative options can let you start building equity before you have a full down payment ready:

• Rent-to-own arrangements: Some sellers or specialized programs apply part of your rent toward a future purchase price. Be cautious and read the fine print, but it can be a bridge for those building credit or savings. 
• Co-buying: Purchasing with a trusted friend, partner, or family member lets you combine savings and income for a stronger offer and a shared down payment. Legal agreements up front are critical to protect both parties. 
• House hacking: Buying a small multifamily property (like a duplex) and renting out the other unit can help offset the mortgage while you build equity. FHA and VA loans often allow these structures with low down payments.
  

7. Strengthen what lenders care about

Even if you don’t have a perfect down payment yet, you can improve your borrower profile, which directly affects how far your savings stretch.

• Raise your credit score. Pay down revolving balances and keep utilization low. A 20- to 40-point bump can drop your interest rate enough to offset a smaller down payment. 
• Lower your debt-to-income ratio (DTI). Lenders often use DTI to decide how large a loan they’ll approve. Paying off a small loan or credit card can increase your borrowing power immediately. 
• Stabilize your employment history. A consistent record (even across different employers in the same field) gives lenders more confidence to approve borderline applications.
  

These behind-the-scenes improvements can mean the difference between waiting another year and getting approved now.

8. Know when “sooner” still needs to mean “smart”

Buying earlier can make sense financially, especially in markets where rents keep climbing, but not if it stretches you too thin. Here are a few reality checks before you leap:

• Make sure your emergency fund survives the purchase; owning a home means new surprises like water heaters and roof leaks. 
• Avoid draining retirement accounts if the penalties or lost compounding outweigh short-term savings. 
• Remember that a smaller down payment may come with PMI, which adds to your monthly bill temporarily. Factor that into your comfort level, not just your approval math.
  

9. The importance of multiple opinions

Every lender has slightly different rules, rates, and programs. Some are friendlier to first-time buyers, some specialize in government loans, and others offer in-house grants or closing-cost credits. What one loan officer says “no” to, another may approve.

That’s why the single best move before you finalize any down payment strategy is simple but powerful: talk to more than one mortgage professional. A few conversations can surface opportunities you didn’t know existed and help you compare true costs, not just advertised rates.

10. Turning patience into progress

Saving for a down payment takes patience, but the process doesn’t have to feel stagnant. Every small choice, from automation to research to reaching out for help, is a brick in the foundation of your future home.

The finish line isn’t necessarily 20%. It’s the point where your financial footing feels stable enough to take the next step with confidence. Whether that’s through a 3% down conventional loan, a state grant, or a creative side hustle, you’re moving closer to the moment you’ll turn the key and say, “We did it.”

And if you’re not sure which route fits best, talk to a few professionals. The right guidance can turn what feels like a distant goal into something tangible, and sooner than you think.