How You Can Afford More Home Without Saving | 2025

You can afford more house by improving your credit score, exploring first-time buyer programs, adding a co-borrower, or combining multiple strategies - no additional savings required.

This is a common question in today’s market. Many people are curious about which steps to take to increase their home buying budget when saving more for the down payment is not a realistic option.

There are quite a few ways to increase your purchasing power. You may find yourself wondering...

What happens if I raise my credit score?

A better credit score can seriously increase what you can afford. Large bumps in your score could unlock better interest rates, potentially saving you hundreds on monthly payments. Focus on paying off any collections, paying bills on time, and keeping credit card balances low. Improvements to your credit score can make a big difference in what lenders offer you. Strive for a minimum credit score of 620; however, the higher your score, the better your options will be.

What happens if I delay buying until next year?

It really depends on what's happening in your local market and with the economy.

The big question is: What's your situation right now? If you're feeling squeezed by monthly payments or your savings are a bit thin, taking some time to improve your finances could be more beneficial. Waiting could go either way. If you're saving aggressively, an extra year means a bigger down payment, which could get you a more expensive house.

But remember—home prices and interest rates change constantly. Instead of trying to time the market, focus on what you can control: building savings, improving credit, and getting your finances in shape. If you've got a decent down payment saved up and you've found a home you love within your budget, jumping in now could make sense.

» Get Free Access Now: Learn what to expect during the home buying process from beginning to end with our Free Home Buying Guide

What happens if I get a home loan made for first-time buyers?

Those are called FHA loans. FHA loans allow you to buy a home with just 3.5% down and have more flexible credit requirements compared to other types of loans.

Here's the deal though - there's a small catch. You'll need to pay something called PMI (it's basically extra insurance) throughout your loan. But if it gets you into a home sooner rather than later, a lot of people think it's worth it!

VA loans are even better if you qualify - zero down payment and no mortgage insurance required.

» MORE: Use the Mortgage Calculator to compare your mortgage options side-by-side.

What if I receive money from family?

This is actually not uncommon! Family help can be a game-changer. Whether it's from your parents or a gift from a generous aunt, this extra cash can seriously boost what you can afford.

Just keep in mind that you'll need to be upfront with your lender about where this money came from. They're okay with family gifts, but they need paperwork to prove it's actually a gift and not another loan you'll have to pay back. This extra cash directly increases your buying power. Just remember - lenders need documentation showing where the money came from.

What if I get assistance through first-time homebuyer programs?

State and local programs can provide you with assistance for down payments, help with closing costs, and special loan terms. Some even offer grants (free money!) that don't need to be repaid. Check what's available in your area. These programs usually combine wonderfully with other benefits, providing you with even greater buying power!

What if I add another person to my application?

Adding someone, or what lenders call a 'co-borrower,' with solid income and good credit can double your homebuying power. However, this only applies if they have a good credit history and income. Lenders look at your combined income, potentially qualifying you for a much bigger loan. Just make sure you're both ready for the commitment - you'll share responsibility for the payments, and both credit scores will be on the line. It's important to note that if the co-borrower's financial situation changes, it could affect your ability to make payments and your credit score.

💡 Tip: Most people don't know this, but the person with the best credit profile and stable income should be listed on the mortgage application first. Putting down the strongest applicant first improves your overall application.

» NEXT: Learn what to expect during the home buying process from beginning to end with our Free Home Buying Guide

Remember: There are quite a few ways to increase your purchasing power this year. Many buyers combine several of these approaches - like using an FHA loan with family gift money while also taking advantage of first-time buyer programs. The key is finding the right mix that works for your situation.