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Aim to spend 28% or less of your income on housing

Step 1: Determine how much you want to spend on a house.

The first step in how to save for a house is deciding how much house you want to buy. Gone are the days when a 20% down payment was the norm. But a down payment isn’t the only cash you’ll need when the time comes to close on a house. And there are long-term costs to consider, as well.

Immediate costs

When it’s time to close, here are things you’ll need money for:

  • Down payment (including earnest money)
  • Closing costs
  • Moving expenses
  • Inspections

 

Long-term costs

These costs can exist throughout your mortgage, and may change over time:

  • Homeowner’s insurance (possibly in an escrow account)
  • Property taxes (possibly in an escrow account)
  • Private mortgage insurance (PMI)
  • Utilities, repairs and maintenance

Looking for more information on affordable housing and mortgages?

If you’re interested in down payment assistance or grant programs for homebuyers with limited incomes, check out our access to homeownership resources. Learn about mortgages you might not have heard about, connect to mortgage loan officers and find answers to even more of your homebuying questions. You can also read inspirational stories from homeowners who used affordable mortgages to successfully purchase new homes.

Step 2: Decide what your down payment should be.

In 2024 the median down payment amount for first-time homebuyers was just 9%.1 Less than you thought, right? As you plan for your own down payment, it could be worthwhile to look into payment assistance programs, or if your lender offers existing customer credits.

Is a lower down payment okay for you?

Generally, the more you put down, the lower your interest rate and monthly payment. What down payment amount are you comfortable with?

Learn about down payments

Calculate your ideal down payment amount.

Our down payment calculator can help you decide how much you want to save as you prepare for the mortgage process.

Visit the down payment calculator

What is down payment assistance?

There are many forms of down payment assistance designed to help eligible homebuyers cover down payment costs.

Explore assistance options

Get closer to your new home.

Are you ready to start taking steps toward a new home? If your answer is yes, get an estimate of what you may be able to borrow in just a few minutes or connect with a mortgage loan officer about your mortgage options

Get prequalified Find a mortgage loan officer

Step 3: Find a place to keep your down payment as you save.

When you’re saving money for a down payment, it’s a good idea to keep the money somewhere that’s easy to access – like a savings account. A certificate of deposit (CD) may provide a higher rate of return, but pay attention to the required term lengths and how they may impact your homebuying schedule. Here are some accounts to get you started.

We're having trouble displaying money market account rates. It shouldn't last long, so please try again shortly.

Money Market account

Enjoy greater interest-earning power, benefits similar to checking accounts and easy access to funds.

Earn up to X.XX APY when you deposit at least $25,000 into a new Elite Money Market account or an existing account that was opened within the last 30 days.2

Apply now Learn more

CD Special

Promotional rates start at 4.00% APY for a 5-month term. Other rates and terms are available.3, 4, 5, 6, 7

A CD Special lets you earn more on your money than traditional savings accounts. Rates vary by term and location. Check yours before opening an account.

Learn more

Bank Smartly® Savings account

Enjoy competitive rates, easy access to funds and higher yields when paired with Bank Smartly® Checking.

Earn up to 3.00% APY when you pair a new Bank Smartly® Savings account with a Bank Smartly® Checking account, Safe Debit account, or U.S. Bank Smartly™ Visa Signature® card and a combined qualifying balance of at least $100,000.8

Start saving Learn more

Step 4: Look for other ways to save money and cut back on spending.

Depending on your timeline, cutting back on vacations and eating out aren’t always the best ways to save for a house. Instead, make a plan and be strategic.

Article

Where you keep your money matters.

There are a few types of accounts to choose from when it comes to saving money for a down payment on a house. Standard savings accounts and CDs (certificates of deposit) are just two such options.

Learn more about savings account options

Article

How to pay down credit card debt

Along with saving for a down payment, having a good relationship with credit is important in buying a home and qualifying for the best interest rates. Here are some tips on paying down your credit card debt.

Read about paying off credit card debt

Article

How much house is affordable?

A standard rule for lenders is that your monthly housing payment should not take up more than 28% of your income. However, home affordability is about more than just how much you can borrow.

Read more about the costs of a house

Looking for more information on affordable homebuying?

Connect with coaches and mortgage loan officers, learn about mortgages you might not have heard about and find answers to even more of your homebuying questions.

Explore more homebuying resources

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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.

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  1. From the article “First-time home buyers shrink to historic low of 24% as buyer age hits record high”, published November 4, 2024 by the National Association of REALTORS®. 
    https://www.nar.realtor/newsroom/first-time-home-buyers-shrink-to-historic-low-of-24-as-buyer-age-hits-record-high

  2. All interest rates and APYs for the U.S. Bank Elite Money Market account are determined at the bank’s discretion and are subject to change at any time, including after the account is opened, regardless of account balance. Fees will reduce your eligible balance, and deposits are needed to cover these fees to maintain the daily balance for this rate offer.

    How to obtain the rate: This rate is valid on new U.S. Bank Elite Money Market accounts for clients who do not have any existing consumer savings or money market account or for clients with any existing consumer savings or money market account that has been open for less than 30 days. This rate is not valid for clients with any consumer savings or money market account closed within the last 30 days. Get the Annual Percentage Yield (APY) as noted above by depositing at least $25,000 within 30 days of account opening. A minimum opening deposit of $100 is required to open. If you do not deposit $25,000 within 30 days, the standard interest rate will be applied.

    How to maintain the rate: Deposit at least $25,000 within 30 days of account opening and maintain a minimum daily balance of at least $25,000 each day thereafter. If the account balance falls below $25,000 the standard interest rate will be applied until the account balance is at or above $25,000 again.

    The standard interest rate balance tiers and APYs are accurate as of today's date: Under $10,000: 0.01%; $10,000 to $24,999.99: 0.01%; $25,000 to $49,999.99: 0.05%; $50,000 to $99,999.99: 0.05%; $100,000 to $499,999.99: 0.05%; $500,000 and above: 0.05%.

    Interest information: You must maintain the minimum daily balance needed for each tier in order to earn the Annual Percentage Yield (APY) disclosed. Interest will be compounded daily and credited to your account monthly. We use the daily balance method to calculate interest on all deposit accounts. This method applies a daily periodic rate to the principal in the account each day. Interest on your check deposit begins to accrue on the business day we receive credit for this account. If you close your account before interest is credited you will not receive the accrued interest. Fees could reduce earnings on the account. Other restrictions may apply.

  3. FDIC insured to the maximum allowed by law.

  4. $1,000 minimum opening deposit up to a maximum of $250,000. 

  5. Online application is not valid for single maturity CDs, business or retirement CDs, brokerage deposits, institutional investors, public funds or in conjunction with other promotional offers.

  6. Offer good for the initial term only. CD is automatically renewed for the same term. The rate is determined based on the published rate for the CD, excluding CD Specials, that is closest to but not exceeding the term of the CD. Advertised rate and APY are offered at the bank's discretion and may change daily.

  7. Annual Percentage Yield (APY) assumes principal and interest remain on deposit for the term of the certificate. All interest payments for the APY will be made at the end of the term or annually, whichever occurs first. Penalty will be imposed for early withdrawal. Fees could reduce earning on the account.

  8. Today’s interest rates and APYs for the U.S. Bank Smartly Savings account, including the interest rate bump, are variable, determined at the bank’s discretion, and can change at any time, including after the account is opened. Today’s interest rates and APYs, including the rate bump, are accurate as of today’s date. A minimum opening deposit of $25 is required to open.

    The interest rates above are accurate for accounts opened on today’s date. If you have an existing U.S. Bank Smartly® Savings account, the advertised rates on the rate sheet may not apply. Log into your Online Banking or Mobile App to view your personalized account interest rate and interest rate bump or contact a banker. Select Products & Offers to see your personalized rates. This rate will also apply to any new U.S. Bank Smartly Savings accounts you open.

    Eligibility for an interest rate bump: An interest rate bump is applied to a U.S. Bank Smartly® Savings account when at least one account holder maintains a valid and in-good-standing eligible product. U.S. Bank Smartly® Savings accounts without a qualified and eligible associated denoted product will not receive an interest rate bump. The interest rate bump will vary based on Combined Qualifying Balances (CQB). One of the following eligible and in-good-standing products must be maintained:

    • U.S. Bank Smartly® Checking
    • Safe Debit account
    • U.S. Bank Smartly™ Visa Signature® Card

    What eligible products are included in your CQB: The following products offered by U.S. Bank and its affiliates are eligible for inclusion in your CQB:

    • Consumer checking, money market, savings, Certificate of Deposits (CDs), and/or Individual Retirement Accounts (IRAs)
    • Personal Trust accounts
    • U.S. Bancorp Investments accounts
    • U.S. Bancorp Advisors brokerage accounts

    Note: Business and commercial products are never eligible.

    Qualified Balance: Funds on deposit in an eligible product, where you have ownership interest, are counted towards your CQB.

    • Examples of eligible customer to account relationship types, include, but are not limited to: Individual owner, joint owner, primary non-signer.

    Conversely, funds on deposit in an eligible product that do not grant ownership interest, are not counted towards your CQB.

    • Examples of ineligible customer to account relationship types, include, but are not limited to: Trustee (IFI), Grantor (GRT), all Irrevocable Trust roles, Payable on Death, Representative Payee, Guardian.

    How is your CQB calculated: For jointly owned U.S. Bank Smartly Savings accounts, each owner’s qualifying balances will be reviewed. If applicable, the owner with the highest CQB will be used to determine the Smartly Interest Rate Bump Tier. The interest rate bump and balance range information will be visible to all owners on the joint account. There are two CQB calculations completed for every customer.

    • Monthly – Upon the opening of your first account, and thereafter at the beginning of each calendar month, your historical average CQB is calculated by summing all available previous days qualified balances and dividing by the number of days since the first eligible product was opened (90 calendar day maximum).
    • Daily – Each day your CQB is calculated by totaling your end of day qualified balance on deposit in an eligible product.

    How is your Smartly Interest Rate Bump Tier determined: After the eligible product verification is completed, on the next business day we will determine your Smartly Interest Rate Bump Tier. Your tier is based on the better of your daily or monthly CQB calculation. Once a tier has been assigned to you, it will not be downgraded for the remainder of that calendar month. However, at any point during a calendar month, you may receive a tier upgrade based upon your daily CQB. Assignment of an initial tier, monthly tier upgrade or downgrade, and/or daily tier upgrades generally are applied within five business days. For your individual accounts, your interest rate bump tier will be your tier (as described above). For joint accounts, the tier is assigned the highest tier associated with any account owner, if applicable. From there, within five business days, the interest rate bump is added to the standard interest rate to calculate the interest rate that will be applied to the entire account balance in the eligible U.S. Bank Smartly® Savings account. If the U.S. Bank Smartly® Savings account is closed, the interest rate bump will cease immediately, and accrued interest will not be paid. If the required eligible product (U.S. Bank Smartly® Checking, Safe Debit account or a U.S. Bank Smartly™ Visa Signature® Card) is closed but the U.S. Bank Smartly® Savings account remains open, eligibility to receive an interest rate bump will remain valid until the end of the calendar month. Changes in the ownership structure of your U.S. Bank Smartly® Savings account or the required eligible product may result in immediate loss of the interest rate bump.

    Balance and interest information: You must maintain the minimum balance needed for each tier in order to earn the Annual Percentage Yield (APY) disclosed. All rates and APYs are subject to change after the account is opened. Fees could reduce earnings on the account. Interest rates currently offered on applicable deposit accounts are determined at the bank's discretion and may change daily. The daily balance is the balance at the end of each business day, equal to the beginning balance for that day plus the current business day credits, minus the current business day debits. Business days are Monday through Friday; federal holidays are not included. We use the daily balance method to calculate interest on all deposit accounts. This method applies a daily periodic rate to the principal in the account each day. Interest on your check deposit begins to accrue on the business day we receive credit for your applicable deposit accounts. Interest will be compounded daily and credited to your account monthly for all savings accounts, except Standard Savings, which is paid quarterly. If you close your account before interest is credited, you will not receive the accrued interest.

Start of disclosure content

Investment and insurance products and services including annuities are:
Not a deposit • Not FDIC insured • May lose value • Not bank guaranteed • Not insured by any federal government agency.

The Greenlight card is issued by Community Federal Savings Bank, member FDIC, pursuant to license by Mastercard International. While Greenlight does not charge a fee for ATM withdrawals, all ATM transactions using the Greenlight debit card, including those at U.S. Bank ATMs, are subject to the transaction fees and surcharges imposed by the ATM provider.

For U.S. Bank:

U.S. Bank is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Investments.

*For U.S. Bancorp Investments:

Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank. Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License# 0E24641.

**For U.S. Bancorp Advisors:

Brokerage and investment advisory products and services are offered by U.S. Bancorp Advisors, LLC, an SEC-registered broker-dealer, investment adviser, member FINRA/SIPC, and subsidiary of U.S. Bancorp and affiliate of U.S. Bank National Association.  Insurance products are offered by USBA Insurance Services, a dba of U.S. Bancorp Advisors, having a California domicile and principal place of business at 800 N. Brand Blvd., 16th Floor, Glendale, CA 91203. CA Insurance License #6011694. Products may not be available in all states.

***Personal Trust account balances are the current account balance as of close of the prior day for eligible trust account types that are held for your benefit: IRAs, Agency accounts, Revocable Trust accounts and Custody accounts.

****Trustee (IFI) – The person(s) or entity managing trust assets of the deposit account and distributing property according to the terms defined within the trust document.