Step 1: Your Financial Snapshot
Let's see where you stand right now. No judgment, just numbers.
💵 Monthly Income
💳 Monthly Expenses
📊 Current Debt
Include: credit cards, car loans, student loans, personal loans
💰 Current Savings
📈 Your Financial Health Score
Step 2: Choose Your Debt Strategy
If you have debt, here's how to tackle it while saving for a home
Pick the method that fits your personality:
Debt Snowball
Strategy: Pay off smallest debts first, regardless of interest rate. Build momentum with quick wins.
Debt Avalanche
Strategy: Pay off highest interest rate debts first. Mathematically optimal for saving money.
Hybrid Approach
Strategy: Knock out 1-2 small debts for quick wins, then attack high-interest debt.
Our recommendation: Do BOTH, but prioritize based on your numbers:
- ✔ If debt has interest rate >7%: Focus 70% on debt, 30% on savings
- ✔ If debt has interest rate <5%: Focus 50% on debt, 50% on savings
- ✔ Always maintain minimum $1,000 emergency fund
Step 3: Calculate Your Savings Goal
How much do you need, and how fast can you get there?
Down Payment Savings Calculator
Step 4: Your Personalized Savings Plan
Choose your timeline and follow the month-by-month roadmap
3-Month Aggressive Plan
For those who want to move FAST. Requires significant lifestyle changes but gets you to your goal quickly.
Month 1 $1,500
- Audit ALL expenses - cut 30% of discretionary spending
- Sell unused items (garage, Facebook Marketplace, OfferUp)
- Start side hustle immediately (see ideas below)
- Cancel unused subscriptions (target: save $100-200/mo)
- Negotiate bills (internet, phone, insurance)
- Set up automatic transfer to savings on payday
Month 2 $1,500
- Maximize side hustle income (aim for $500 extra)
- Implement "no spend" challenge for 2 weeks
- Brown bag lunch every day (save $200-300/mo)
- Pause entertainment expenses (streaming, dining out)
- Pick up overtime or extra shifts if possible
- Celebrate hitting $3,000 saved
Month 3 $1,500
- Continue all Month 1-2 strategies
- Request gift money from family if available
- Tax refund? Entire amount goes to savings
- Final push - you're almost there
- Research down payment assistance programs
- Celebrate reaching $4,500 - ready to take next steps
6-Month Moderate Plan
Balanced approach with sustainable changes. Allows you to maintain quality of life while making steady progress.
Month 1-2 $750/mo
- Complete financial audit and set up budget
- Cut 15-20% from discretionary spending
- Cancel 3-5 unused subscriptions
- Start one side hustle (aim for $250/mo extra)
- Automate savings transfers on payday
- Build meal planning habit (save $150/mo on food)
Month 3-4 $750/mo
- Optimize transportation costs (carpool, gas apps)
- Scale side hustle income to $300-400/mo
- Implement "one fun splurge per week" rule
- Negotiate better rates on insurance and bills
- Use cash-back apps and credit card rewards strategically
- Celebrate hitting $3,000 milestone
Month 5-6 $750/mo
- Continue all established savings habits
- Bonus income? Put 100% toward savings
- Review and optimize budget monthly
- Research down payment assistance options
- Start conversations with family about gift money
- Reach $4,500 goal - ready for pre-approval
9-Month Relaxed Plan
Gentle, sustainable approach. Perfect if you're working on credit simultaneously or need to maintain current lifestyle.
Month 1-3 $500/mo
- Track all spending for one month to find savings
- Identify and cut 10% from discretionary spending
- Cancel 1-2 unused subscriptions
- Set up automatic $500 transfer on payday
- Start small side income ($100-150/mo is perfect)
- Build sustainable budget you can stick to
Month 4-6 $500/mo
- Optimize one expense category per month
- Increase side income slightly ($150-200/mo)
- Use "Save the Change" apps for extra savings
- Put windfalls toward savings (birthday money, bonuses)
- Celebrate reaching halfway point ($2,250)
- Review progress and adjust if needed
Month 7-9 $500/mo
- Continue proven strategies that work for you
- Research down payment assistance programs
- Start pre-approval preparation (documents, credit)
- Have family gift money conversations
- Final push to $4,500 goal
- Celebrate completion and start house hunting
Step 5: Boost Your Income
These side hustles can accelerate your timeline significantly
Pick one or two that match your skills and schedule. Even $300-500/month extra gets you to your goal faster.
Food Delivery
$300-800/moDoorDash, UberEats, Instacart. DFW market is strong. Work your own hours, get paid weekly.
Pet Sitting/Walking
$400-1000/moRover, Wag. High demand in Plano, Frisco, Arlington suburbs. Weekend pet sitting pays premium.
Freelance Writing
$500-2000/moUpwork, Fiverr. Blog posts, website copy, social media content. Build portfolio over 2-3 months.
Virtual Assistant
$600-1500/moEmail management, scheduling, data entry. Many DFW businesses need remote help. Steady income potential.
Online Tutoring
$400-1200/moVIPKid, Tutor.com, Wyzant. Math, English, test prep. Evening/weekend hours work well.
Handyman Services
$800-2000/moTaskRabbit, local advertising. Furniture assembly, basic repairs, painting. High demand in DFW.
Photography
$500-2000/moEvents, portraits, real estate photos. Start with family/friends, build portfolio. Weekends are prime.
Sell Handmade Goods
$300-1500/moEtsy, local markets. Jewelry, art, crafts. Build inventory slowly. Dallas has strong arts scene.
Making an extra $100/month = $1,200/year toward your down payment. With a 3.5% down payment, that $1,200 gives you the buying power to afford a home priced $34,000 higher than you could otherwise. Every little bit directly increases what you can afford!
Step 6: Explore Down Payment Assistance
DFW-specific programs that can give you thousands in help
These aren't loans - they're grants and assistance programs specifically for first-time buyers in Texas. You might qualify for more than you think.
Texas State Affordable Housing Corporation (TSAHC)
Up to $15,000Statewide program offering down payment and closing cost assistance. Can be combined with their competitive interest rate mortgages.
Eligibility Requirements:
- First-time homebuyer (or haven't owned in 3 years)
- Complete homebuyer education course
- Meet income and purchase price limits for your county
- Minimum credit score of 640
Forgiven after staying in home for specified period
Texas Department of Housing (TDHCA) My First Texas Home
Up to 5% of loanState program providing down payment assistance as a second lien. Competitive interest rates on first mortgage.
Eligibility Requirements:
- First-time homebuyer definition met
- Complete approved homebuyer education
- Income limits: $103,000 (DFW, varies by household size)
- Purchase price limits apply
City of Dallas Down Payment Assistance
Up to $20,000City-specific program for Dallas residents. Higher assistance amounts for moderate-income families.
Eligibility Requirements:
- Must purchase home within Dallas city limits
- Income limits apply (varies by household size)
- Complete homebuyer education course
- Minimum 620 credit score
Fort Worth HOME Program
Up to $15,000City of Fort Worth's assistance program. Forgivable loan after 10 years of occupancy.
Eligibility Requirements:
- Must purchase in Fort Worth city limits
- Income limits: 80% of area median income
- Complete HUD-approved housing counseling
- Minimum 640 credit score
Need Help Navigating These Programs?
Our verified network of lenders knows these programs inside and out. They'll help you apply and maximize your assistance.
Step 7: Family Gift Money Guidelines
Using gift money the RIGHT way (lenders have specific rules)
Who Can Give?
Gifts must come from family members: parents, siblings, grandparents, spouse, fiance, domestic partner. Friends and non-relatives generally cannot provide gift funds.
Gift Letter Required
Lender will require a signed gift letter stating: the donor's relationship, gift amount, property address, and confirmation that repayment is NOT expected. No exceptions.
Paper Trail Matters
Must show source of gift: donor's bank statement, transfer confirmation, and the money appearing in YOUR account. Cash gifts don't work - must be traceable.
Timing is Everything
Gift must be transferred at least 60 days before closing OR fully documented during underwriting. Last-minute gifts create problems.
FHA vs. Conventional Rules
FHA: 100% of down payment can be gift. Conventional: You must contribute at least 5% from your own funds if down payment is <20%. Rules matter!
Tax Implications
Gifts under $18,000/year (2024) have no tax implications for recipient. Donor may need to file gift tax return if over limit (but rarely owes taxes due to lifetime exemption).
Do NOT accept "gift money" that is actually a loan in disguise. Lenders will discover this during underwriting, which can kill your loan approval. If there's any expectation of repayment, it's debt - not a gift - and must be disclosed as such. Hiding debt is mortgage fraud.
Have Questions About Gift Money?
Talk to our verified lenders BEFORE accepting gift money. They'll make sure you do it correctly and avoid underwriting issues.
Step 8: Optimize Your Budget
Enter your current spending. We'll show you realistic ways to save without major lifestyle changes.