---
title: "How to save money for a house: the down payment, and how long it takes"
description: "How to save money for a house: what a 10% or 20% down payment is on a 2026 median home, how many months each takes, and where to keep the money until you buy."
author: "Wealtie Team"
published: 2026-11-03
updated: 2026-11-03
category: "Saving"
canonical: https://wealtie.com/blog/save-money-for-a-house
---

# How to save money for a house: the down payment, and how long it takes

To save money for a house, set a target for the down payment plus closing costs, then move a fixed amount into a separate savings account every payday. The typical first-time buyer put down 10% in NAR's 2025 survey; on September 2026's median home price of $417,500, that's $41,750.

## Key takeaways

- The median existing-home price in the US was $417,500 in September 2026, according to the National Association of Realtors.
- First-time buyers put down a median 10% in NAR's 2025 survey, the joint-highest since 1989; repeat buyers put down 23%.
- A 10% down payment on $417,500 is $41,750: about $1,160 a month for three years, or $696 a month for five.
- On a conventional loan, putting down less than 20% usually means paying private mortgage insurance, which protects the lender, not you.
- Money you'll need within a few years belongs in an insured savings account, not in investments that could fall just before you buy.

## How much do you need to save for a house?

The down payment, plus closing costs, plus a cushion for the move. The down payment is the biggest part, and it's the one to start with.

The median existing-home price in the US was $417,500 in September 2026, up 1.3% on a year earlier, according to the [National Association of Realtors](https://www.nar.realtor/newsroom/existing-home-sales-increased-1-5-in-september-according-to-nar-report). Your target depends on the price of the homes you'd buy, not the national median, so look at listings where you want to live before you pick a number.

Closing costs come on top: appraisal, title insurance, government taxes and prepaid property tax and insurance, as the [CFPB lists them](https://www.consumerfinance.gov/ask-cfpb/what-are-closing-costs-en-1845/). Your lender's Loan Estimate gives the exact figure once you apply. Until then, keep a separate allowance for them, and for the costs of moving in, so the down payment isn't spent twice.

## How much is a down payment?

Usually 10% to 20% of the price for most buyers, though some loans allow less. First-time buyers put down a median 10% in NAR's [2025 Profile of Home Buyers and Sellers](https://www.nar.realtor/press-releases/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40), the joint-highest share since 1989. Repeat buyers, who usually have a home to sell, put down 23%.

| Home price | 10% down | 20% down |
| --- | --- | --- |
| $300,000 | $30,000 | $60,000 |
| $417,500 (US median, Sep 2026) | $41,750 | $83,500 |

The same survey found first-time buyers were a record-low 21% of buyers, with a median age of 40. Saving the down payment is a big part of why.

:::callout{type="note"}
In the UK, the average house price was £273,000 in August 2026, up 0.9% on a year earlier, according to the [ONS](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/october2026). A 10% deposit on that is £27,300.
:::

## Do you need 20% down?

No. But on a conventional loan, putting down less than 20% usually means paying private mortgage insurance, which protects the lender, not you, according to the [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/).

That's the trade-off. Waiting to save 20% avoids the insurance but takes twice as long, and prices and rents keep moving while you wait. Buying with 10% gets you in sooner with a higher monthly payment. Neither is the right answer for everyone. Ask a lender for both figures before you set your target, so you're choosing between real numbers.

## How long does it take to save for a house?

Divide the target by what you can save each month. A 10% down payment on the median home takes about three years at $1,160 a month, or five at $696.

| Target | 3 years | 5 years | 7 years |
| --- | --- | --- | --- |
| $30,000 (10% of $300,000) | $833/month | $500/month | $357/month |
| $41,750 (10% of $417,500) | $1,160/month | $696/month | $497/month |
| $83,500 (20% of $417,500) | $2,319/month | $1,392/month | $994/month |

Pick the row and the column you can live with, then work backwards to the monthly amount. If the monthly figure doesn't fit, change the target home or the timeline, not the plan to save on payday.

## How to save money for a house faster

Move the money first, on payday, into an account you don't spend from. Then add to it whenever your income goes up.

- **Automate the transfer.** Set it for the day your pay lands, so the money is gone before it can be spent.
- **Raise it with every pay rise.** Add at least half of each raise to the transfer before your spending catches up with it.
- **Put windfalls in.** Tax refunds, bonuses and, if you're paid every two weeks, the two extra paychecks a year.
- **Look at the big costs first.** Rent, a car payment and insurance move the number more than coffee does. A cheaper flat for two years can be worth more than every small cut combined.
- **Keep an emergency fund separate.** Without one, the first broken boiler comes out of the house fund. [How much should be in an emergency fund](https://wealtie.com/blog/how-much-emergency-fund) explains the first target.

In NAR's 2025 survey, 59% of first-time buyers used personal savings for the down payment, 26% drew on financial assets like a 401(k) or stocks, and 22% had gifts or loans from family or friends.

## Where should you keep a house deposit?

In a separate, insured savings account that you can reach within days, not in investments.

Money you'll need on a set date within a few years shouldn't be exposed to a market fall. If stocks drop 20% the month before closing, you can't wait for them to come back. A high-yield savings account or a money market deposit account at an insured bank keeps the balance safe and still earns interest. [Where to keep your emergency fund](https://wealtie.com/blog/where-to-keep-emergency-fund) compares the options, and the same reasoning applies to a house fund.

Keep it apart from your everyday account. A balance you can see but not easily spend grows faster than one sitting next to your debit card.

## How do you track a house savings goal?

Check the balance against the target once a month and see if you're ahead of the timeline or behind it.

In Wealtie, add the savings account alongside your card and cash, and your [net worth tracker](https://wealtie.com/features/accounts) shows them in one total. The payday transfer counts as a transfer between your own accounts, not as spending, so your monthly [budget](https://wealtie.com/features/budgets) shows what you spent, not what you saved. Set the budget to take-home pay minus the transfer, and Budget Health warns you mid-month if spending is on track to eat into it.

## Questions people ask

### How much should I save for a house?

Save for the down payment plus closing costs and a cushion for moving. The typical first-time buyer put down 10% in NAR's 2025 survey. On September 2026's median price of $417,500, that's $41,750 before closing costs.

### How long does it take to save for a house?

Three years at about $1,160 a month, or five years at about $696 a month, to save $41,750, a 10% down payment on September 2026's median US home. Divide your own target by what you can save each month.

### Do you need 20% down to buy a house?

No. First-time buyers put down a median 10% in NAR's 2025 survey. On a conventional loan, less than 20% usually means paying private mortgage insurance, which adds to the monthly cost.

### Where should I keep my house down payment savings?

In a separate, insured savings account you can reach within days, not in stocks or other investments. A market fall in the months before you buy can't be waited out when the closing date is set.

### Where do first-time buyers get their down payment?

Mostly from savings. In NAR's 2025 survey, 59% of first-time buyers used personal savings, 26% used financial assets like a 401(k) or stocks, and 22% had gifts or loans from family or friends.

## Sources

1. [Existing-Home Sales Increased 1.5% in September, According to NAR Report](https://www.nar.realtor/newsroom/existing-home-sales-increased-1-5-in-september-according-to-nar-report) (National Association of Realtors, checked 1 November 2026)
2. [First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40 (2025 Profile of Home Buyers and Sellers)](https://www.nar.realtor/press-releases/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40) (National Association of Realtors, checked 1 November 2026)
3. [What is private mortgage insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/) (Consumer Financial Protection Bureau, checked 1 November 2026)
4. [What are closing costs?](https://www.consumerfinance.gov/ask-cfpb/what-are-closing-costs-en-1845/) (Consumer Financial Protection Bureau, checked 1 November 2026)
5. [Private rent and house prices, UK: October 2026](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/october2026) (Office for National Statistics, checked 1 November 2026)

*This article is general information, not financial, tax or legal advice. Your situation is your own; check the numbers that apply to you before you act on them.*