For many couples, marriage and homeownership are two of life’s biggest milestones. However, affording both can take years of careful saving and financial planning. According to U.S. Census data, the median age at first marriage in 2024 was 28 for women and 30 for men. Meanwhile, the National Association of Realtors® reports that the median age of first-time homebuyers in 2024 was 38. That means a typical American couple may wait nearly a decade after marriage to buy their first home. Below, we discuss some helpful do’s and dont’s for homebuying.
The do’s and dont’s of homebuying for newlyweds
Do: Ask for Donations to a House Fund Instead of Gifts: Rather than registering for traditional wedding gifts, consider setting up a home fund that allows guests to contribute toward your future down payment. In some cases, newlyweds have been able to fund their entire deposit for a home purchases based on these gifts.
Many wedding planning platforms, such as The Knot, offer cash fund registries, enabling guests to contribute any amount. Since many couples already own common household items, asking for contributions toward a home fund can be a practical and meaningful way to set a strong financial foundation.
Don’t: Finance Your Wedding with Credit Cards or Loans: When applying for a mortgage, lenders evaluate your debt-to-income ratio (DTI) to determine your ability to repay the loan. A high DTI can make it more difficult to qualify for a mortgage. The ideal DTI for mortgage approval is under 36%.
Using credit cards or loans to finance wedding expenses increases your DTI and can delay your homeownership goals. Instead, set a realistic wedding budget that aligns with your current financial situation and avoid borrowing for wedding-related costs.
Do: Explore First-Time Homebuyer Grants and Loan Options: Many states offer first-time homebuyer programs, including tax credits and grants for down payments and closing costs. Researching these options can significantly reduce the financial burden of purchasing a home.
Additionally, consider loan programs that may better suit your needs:
- USDA loans: Ideal for those in suburban or rural areas, offering 0% down payment options.
- FHA loans: Require a minimum credit score of 500 with a 10% down payment, or 580 with a 3.5% down payment, making homeownership more accessible.
Don’t: Wait Until You’ve Saved a 20% Down Payment: The notion that you need a 20% down payment to buy a home is outdated. First-time homebuyers using conventional loans can often qualify with just 3% down. For example, for a home priced at $404,400 (the median price as of December 2024), a 3% down payment would be $12,132.
By saving $350 per month, a couple could reach this down payment goal in just three years. Cutting wedding expenses—such as opting for a DJ instead of a live band—could further accelerate the savings process.
Do: Take Advantage of Tax Savings: Consulting a tax professional before your wedding can help uncover potential tax-saving opportunities.
For example, some wedding-related expenses, like flowers or gowns, may be tax-deductible if donated to charity. Additionally, depending on your financial situation, purchasing a home before marriage might offer tax benefits, as single filers can sometimes deduct more than married couples who file jointly.
Summary
Ultimately, the decision of whether to prioritize a wedding or homeownership is a personal one. There’s no right or wrong answer. By strategically planning and utilizing available resources, you can achieve both milestones on a timeline that suits your unique circumstances. By leveraging financial resources, minimizing unnecessary expenses, and prioritizing savings, you and your partner can build a bright future together—sooner rather than later.
Are you thinking about buying or selling a home in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!
