Try These Side Hustles to Save for a Down Payment
WHAT YOU'LL LEARN
Effective side hustles to boost down payment savings
Benefits of a solid down payment for better mortgage terms
Down payment assistance options to fast-track homeownership
WHAT YOU'LL LEARN
Effective side hustles to boost down payment savings
Benefits of a solid down payment for better mortgage terms
Down payment assistance options to fast-track homeownership
Buying a home is a milestone so many of us dream about, but the path to homeownership often comes with a big-time hurdle: the down payment.
This chunk of cash, typically ranging anywhere from 3% to 20% of the home's value, can seem like a pretty steep mountain you’ll have to climb, especially in today's housing market.
Expert Tip
And why is a solid down payment so crucial? For starters, it can help you secure better mortgage terms. A larger down payment often means lower interest rates and monthly payments, potentially saving you thousands over the life of your loan.
“The Side Hustle Saving Strategy”
Now, you future homeowners might be wondering, "How can I save such a large sum when I'm already stretching my budget?" Your answer? Side hustles.
Side hustles are additional income streams you can pursue alongside your main job. They're flexible, often allowing you to work on your own schedule, and can be tailored to your skills and interests.
But side hustles aren't just about making extra money; they're about creating opportunities. They can help you reach your down payment goal faster without sacrificing your current lifestyle. Maybe you have a knack for writing, a passion for pets, or a spare room in your house, whatever the case may be, there's a good chance at least one side hustle on this list fits your situation. For example...
Online Side Hustles
The world wide web offers a wealth of opportunities to earn extra income from the comfort of your (current) home. More than half of Americans, especially Millennials and Gen Z, turn to online side hustles, according to a MarketWatch study. The study found that over 54% of people in the U.S. have a side hustle. With that said, let's take a look at some popular online side hustles that could help you boost your down payment savings.
Freelance Writing
Some of the more right-brained individuals among us have such a way with words. Freelance writing for online publications could be your ticket to extra cash for your down payment. Booming in popularity since 2020, we’d say this is a flexible side hustle that allows you to work on your own schedule and choose projects that interest you the most.
Start by finding your niche, building a portfolio of works, and joining a freelancing platform like Upwork or Fiverr. And if you decide that you’re in the writing hustle for the long haul, remember to network with business and websites directly to pitch your services. Happy writing!
Virtual Assistance
A lot of businesses and entrepreneurs out there need help with administrative tasks but don't have the means to hire full-time employees. That's where virtual assistants come in. If you're organized (like, your medicine cabinet could qualify as a work of art) and have good communication skills (like, hosting a dinner party gives you 0.001% anxiety somehow), this could be the perfect side hustle for you.
Some tasks you might handle:
Email management
Scheduling appointments
Data entry
Social media management
Customer service
Taking on a role like this lets you work around your main job's schedule (if permitted) and can easily be scaled up or down based on availability.
Service-Based Side Hustles
Stepping out of the virtual world and into your local community opens up a whole new range of side hustle options. These service-based gigs not only help you earn extra cash for the down payment but also help you make real connections with people in your neighborhood. Make Mr. Rogers proud! Here are a few of the most popular serviced-based side hustles:
Pet-Sitting and Dog-Walking
For animal lovers (AKA just about 100% of the Earth’s population), pet-sitting and dog-walking are both enjoyable and profitable hustles, especially in bigger cities. Many pet owners need reliable care for their furry friends when they're at work or on vacation, and that’s where you come in.
Apps like Rover or Wag can connect you with pet owners in your area, and just like that, you’ll have a bunch of new furry friends and earning some extra “kibble” on the side. But keep in mind, those aforementioned apps will take a cut of your pay.
Complete a pet first aid course to show your professionalism and care to pet owners seeking your services.
House Cleaning
If you don't mind a bit of elbow grease, house cleaning can be one of the most lucrative side hustles of all. Why? Ask yourself this: How many of us really enjoy cleaning?
So many busy professionals are willing to pay for a spotless home. Why? Ask yourself this: How amazing is the feeling of returning to a home with crisp, clean sheets, spotless floors you can see your reflection in, and a clutter-free living space – serenity at its finest.
And as you build your reputation around town or amongst friends, you may be able to increase your rates or take on more clients, accelerating your savings for that down payment.
Lawn Care and Landscaping
Once again, if you’re of the similar mind that owning a home is better than not owning a home and you’re, once again, willing to get a little sweaty for the cause, lawn care and landscaping are one more option at your home-saving disposal.
And if you think the outdoors are great, you’ve got a green thumb, or you have a discerning eye for lawn beautification, you may want to consider gathering some tools and marketing your services. From whacking weeds to planting flowerbeds, there's always a demand for outdoor assistance.
As the seasons change, you can adapt your services – from spring planting to fall leaf removal.
Gig Economy Side Hustles
At this point, nearly all of us have probably fired up an app on our smart device and enjoyed everything they and the 21st century have to offer. But if you’re saving for a down payment, signing on as an “employee” isn’t such a bad idea, either.
Ride-Sharing Services
A few standout companies have made it easier to earn money by giving rides to people in your area. These side hustles let you choose your hours, which is great for flexibility. Plus, many of them pay extra during peak hours when things are busy. Some even offer insurance to keep you protected while you're working.
Food Delivery Services
And then there’s the rise of food delivery apps. If you have reliable transportation (even a bicycle in some areas), you can start earning by delivering meals from local restaurants to hungry customers. Order up!
Passive Income Side Hustles
We’ve talked about breaking a sweat and elbow grease in the name of saving for the down payment, so now let’s talk about ways to earn money without really doing anything.
Rent Out a Spare Room
Have you heard of the term “house hacking”? We define it as generating income from living in your home. Or in this case, from someone else living in your home.
You could put on your landlord hat and assume landlord duties by renting out a spare bedroom in your home. Spruce it up, snap some pics, and post your listing to popular renting sites. Always screen potential tenants, too, as a safety precaution.
A gig like this requires some upfront effort and occasional maintenance, but once you're set up, the income can roll in while you're off doing your thing.
Expert Tip
Check local regulations and your lease agreement (if renting) before listing your space.
High-Yield Savings Accounts
Take your savings further by putting your down payment funds into a high-yield savings or money market account to earn extra interest if you’re making deposits for an extended period. While the returns might not be as flashy as some other investments, a high-yield savings account offers a safe, steady way to make your money multiply. Read the terms and conditions of your new account before applying. Got questions? Ask your tax or financial professional.
Remember: The key to passive income is patience. These methods provide a steady stream of extra cash to boost your down payment fund over time.
Down Payment Assistance
So, you've been hustling hard. But what if there's a way to potentially fast-track your journey to homeownership?
Down payment assistance (DPA) is a special financing program that helps make homeownership a reality for homebuyers who otherwise may not have the funds for a down payment.
To qualify, both you and the home you want to purchase must meet certain requirements such as your state, income, credit score, and home price. Ask us today to learn more about the DPA programs that could be available to you. The entire Atlantic Bay team is always ready to help future homeowners like you achieve their dreams. Speaking of...
Atlantic Bay Community Lending
Atlantic Bay is committed to helping homebuyers realize the dream of homeownership through community programs in your area. Qualified buyers could potentially receive a lower rate than current market values without income limits or first-time buyer requirements. That means borrowers who might not qualify for other homeownership programs could get the financing they need.
Reach out today to learn more about the Atlantic Bay Community Lending Initiative or to learn about other ways you could expedite your down payment saving plan!
*Atlantic Bay’s community lending program options are subject to availability. Additional loan program qualifications and/or restrictions may apply. Loan programs may change at any time with or without notice.