10 Best Down Payment Saving Tips for Custom Home Construction

a house

A custom-home construction can be satisfying and expensive, both at the same time. According to the National Association of Realtors, a custom-made home in South Texas can cost you around $427,893, which is a lot of money to shell out. So, how do you save money when building a custom home? By utilizing money in the best way possible to save up for the down payment and cost of construction. Let’s dive deeper.

Custom home construction down payment saving tips


Keep a budget

The first step to framing a down payment savings plan is keeping a strict budget and sticking to it. Having a budget plan will help you achieve your savings goals. It will also help you understand your spending habits and financial situation. Keep track of your monthly income, list necessary expenses, and note other monthly expenses. You can also follow the 50-30-20 budget plan, where 50% of your salary can go to necessary expenses, 30% for personal uses, and 20% for savings. This rule may be difficult, but it can help you achieve your goals.

Manage your spending

dollar bills

Cutting out unnecessary expenses will help to add to your savings. It may be challenging to give up on some luxury and comfort, like having your own car, going on vacations, eating out, and buying new products and clothes. However, opting for better, affordable, and cheaper options temporarily will help you save for your dream house. Some other unnecessary spending that you can cut out are gym memberships, subscriptions, and other entertainment services.

Clear off debts

Paying off all the remaining debts from car loans, credit bills, or educational loans before constructing a house will help to lessen your financial burden. Clearing off your debts will help you have a tunnel vision focus on saving most of your income for a house down payment.

Embrace cheaper rentals

Wondering how to save for a down payment while renting? How about moving, ditching the comfort of an expensive apartment and moving to a cheaper option? Moving into a cheaper apartment will help you save thousands of dollars in just a year. Renting an apartment in a less popular neighborhood will also help cut costs, as apartments are usually cheaper in more remote places than in popular towns and cities.

Save extra money

Putting every extra cent you get from work into down payment savings will help you achieve your goal faster. Whether you get bonuses for extra hours at your job or a higher pay raise, utilizing this money for saving instead of spend it on personal purposes will prove to be rewarding.

Get a second job

a worker in the office

Another way to pay for the cost to build a custom home in RGV is to get a second job or have several side jobs to bring in extra money. It may even be your chance to start earning from a hobby you love, such as selling artwork, receiving commissions, photography jobs, giving dance lessons or music lessons, tutoring students, etc. If you love physical exercise, animals, and kids, you can also be a physical trainer, walk dogs and babysit.

Share an apartment

Sharing an apartment is another option to save money, as the rent and other expenses can be split between two or more people. Sometimes the cost of renting a single-bedroom apartment can be just as much as a two-bedroom apartment. You will be able to save much more towards your down payment if you share a two-bedroom apartment and split the rent rather than live in a one-bedroom apartment by yourself.

Lock in the best mortgage rates

It is important to stay alert and plan ahead when it comes to mortgage rates, as they go up and down owing to external factors. It is best to keep an eye on the rates and lock in when the mortgage rates are at the lowest, as this will also help you in the future.

0% APR credit cards

interest rate

Building a home is expensive, so getting a credit card that offers 0% interest for 12 or more months is great. You can make expenses and purchases without paying interest for a year or more. Some credit cards even offer points for every dollar spent. However, making conscious decisions while purchasing with a 0% APR credit card is always recommended.

Chalk out a good construction plan

construction plan being discussed

To increase savings while constructing a custom house, having a good construction plan is ideal. A good plan involves negotiating better deals and finding a good architect and lender. Other things to consider are:

Choose quality builders

To find the perfect builders, one should consider the cost and quality they provide. The style of the house should also be considered when looking for builders.

Location matters


Finding the right location that fits your budget and understanding land rates across different states is important to save money while building a house. For example, Rio Grande Valley offers a lower living cost and a warm climate all year round.

Start saving now

So, this is how to save for a house. Undoubtedly, it will be a painstaking process, but worth it. For more information on building custom homes, contact the best luxury custom home builders today.