Your First Step to Homeownership: Saving for Your Down Payment
Written By: Connor Anderson
Daybreak down payment guide: Use this quick plan to save steadily, lower upfront costs, and move into a new Daybreak home with confidence.
New Homes in Daybreak • Homebuyer Tips
2025 at a Glance
- Rates: 30‑year mortgage rates recently eased into the mid‑6% range. Lower rates can help your monthly budget.
- Conforming loan limit: $806,500 for one‑unit homes nationwide in 2025.
- FHA in Salt Lake County: The 2025 one‑unit limit is $629,050.
- Typical down payment: First‑time buyers put down a median of ~9% nationally, but many qualify for 3% conventional or 3.5% FHA.
- Closing costs: Budget an additional 2–5% of the price for fees and prepaids.
Always confirm current numbers with your lender. Programs and limits can update during the year.
How Much Should You Save?
Start with a simple formula: Down payment + closing costs + move‑in cushion. Here’s a quick example:
- 3% down on a $500,000 home = $15,000.
- Closing costs at 3% ≈ $15,000.
- Move‑in cushion for blinds, landscaping, and furniture: $3,000–$7,500.
Therefore, a practical starting target could be $33,000–$37,500. If you choose a higher down payment, your monthly payment may drop further.
Use Utah Programs to Boost Your Savings
- Utah Housing Corporation (UHC): Ask about down‑payment and closing‑cost assistance paired with FHA or conventional loans.
- Conventional 3% down: First‑time buyers may qualify with reduced mortgage insurance.
- FHA 3.5% down: Flexible on credit; confirm 2025 county limits.
- VA & USDA: Eligible buyers can put 0% down, which preserves cash for closing and move‑in costs.
Down‑payment assistance is subject to income, credit, and funding. Your lender can check eligibility in minutes.
Save Faster With These Small Wins
- Automate it: Send a set amount to a high‑yield savings account every payday.
- Direct windfalls: Tax refunds, bonuses, and side‑gig income go straight to the fund.
- Right‑size subscriptions: Trim a few monthly charges; redirect the savings.
- Set a date: Pick a “first tour” weekend. Deadlines motivate action.
Lower Upfront Costs (Without Losing Momentum)
- Builder incentives: Ask about credits you can apply to closing costs or rate buydowns.
- Rate locks: For new construction, consider extended locks with float‑down options.
- Temporary buydown: A 2‑1 buydown can ease the first two years while you settle in.
- Lender credits: You may swap a small rate increase for help with closing costs—compare the math.
Next Steps in Daybreak
- Tour model homes and shortlist your favorite floor plans.
- Stop by the Information Center for maps, builder contacts, and tips.
- Ask your lender to verify loan limits, UHC options, and a target monthly payment at today’s rates.
Printable Mini‑Checklist
- Target price + down‑payment percent
- Closing‑cost estimate (2–5%)
- Monthly comfort payment
- UHC/assistance eligibility check
- Rate‑lock + buydown strategy
- First tour date on the calendar
You’re Closer Than You Think
Small steps add up quickly. With a plan, a trusted lender, and Daybreak’s wide range of homes, you can turn your savings into a front‑door key. We’re excited to help you get there.
