How can we save for a down payment on a house while paying rent?

Question

We currently are renting a beautiful town house, I’m super grateful! But I just wish I owned my own home. 
We’re not even married yet because we want a home first. It just feels like we’re never going to get there. We have a 1 year old (who is always needing new things) and we really want to expand our family for our 1 year old to have a sibling - but everyone keeps saying “you need to own a home first” “you need to be stable first” so it kinda makes me feel worse...but honestly, we are stable. It’s just we don’t own a home and our car has a lot of problems every few months it feels like so we should really buy a new one. 
Our rent is as much as we would be paying for a mortgage so I know we can afford it. It’s just so hard to save for a down payment when you’re already paying for a home basically.
Any ideas/tips that helped you? I’m getting really down about it lately. We’re only 24, but when we see other people our age buying a home it just sucks!!!

Answer

Honestly, most people just have to rent a less nice place than what they can actually afford for a couple of years. If you’re currently spending to the max of your budget every month it’s never going to happen.

Answer

Look into what options you have as a first time home buyer. Anytime you get a big lump of cash (tax returns, bonuses, gift money, etc) put it away. It might take a while but it will build up. First time buyers in my area can get a mortgage that only requires like 3% down.

Answer

Following

Answer

I don’t know where you live but there’s a loan in the U.S. called USDA loan which is zero percent down. All I needed was closing costs. The first time I bought a house I used it and I bought well within my means so my mortgage was the same as rent would have been.

Answer

At said above look for first time home buyers programs. You may qualify for some help or programs. We also have credit union in KY where we didn’t have to have down payment. Now the interest rate is a little higher but as stated we didn’t have to pay down payment and also we don’t have the mortgage insurance monthly for FHA. 
Otherwise maybe looking at cheaper apartment for a year or two, allowing you to save money.

Answer

I bought a house at 24 for my mom and nephews. I’m 30 now, married with a seven months old and can’t get a house for my new family. Long story. 
But for you, it might actually be easier. Like other said, look into first time buyers, and other offers/help your state might give out. Each state is different, so one might have some help towards home buyers while others do not. Check out the different types of loan you qualify for and their interest rate. Set aside all the money you can stash. Tax return, (if you can use some of the stimulus check do it), gifts, bonuses. Stocks if you have them. Garage sales, etc. You want to look into stuff that will bring small amount because over time they will add up and it’s easier than trying to chase. 
Sit down with a financial advisor. They can help you understand the best way to get to your goals, cut any expenses you don’t need to survive. 
If you have loans and of credit cards, pay them off as soon as possible. Put that cash towards the house fund. Also, having loans/credit cards might help /somewhat/ your credit score but those payments will be taken out of the in income lenders consider you have to pay a mortgage.
Keep track of your credit score. The better your score the better your rate. 
There are also other options to consider, rent to own and owner to owner. Research all the options with your spouse, figure out what works best for you and good luck!

How can we save for a down payment on a house while paying rent?

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