Taylor Getler, Nerdwallet
Weddings and homeownership are two main goals for many couples, but providing both requires years of careful savings and planning. In 2024, US Census data showed that the median age of first marriage was 28 for women and 30 for men. However, the National Association of Realtors reports that the median age for first-time home buyers in 2024 was 38.
If you’re engaged recently, following these dos and dots will help you dramatically reduce the time frame to reach your dream of buying your home.
Do it: Refer to the House Fund in lieu of gifts
Judy Buchman and David Spitalnik of the Bronx, New York, were able to choose this strategy and fund nearly half of their down payment with wedding gift money.
Using the wedding planning platform, the couple registered with a new home cash fund that allows guests to give money. “We are very fortunate to have a lot of our small kitchen appliances and other materialistic things… so we really have a great foundation for our future homes. I just wanted to set it up.”
By accepting cash gifts, you can pay for your wedding and then replenish your savings and help you start preparing your new home budget.
Don’t: Fund your wedding with a credit card or loan
When lenders evaluate your mortgage application, one of the biggest things they consider is your debt-to-revenue ratio (DTI). This represents the percentage of income already allocated to existing obligations.
The higher your DTI, the less money you have to focus on your mortgage. To maximize your approval chances with the widest range of lenders, aim to keep your DTI below 36%.
Paying wedding expenses using a credit card or loan increases your DTI, making it difficult to stay within that 36% target. Borrowing for your wedding means paying money that could be spent on your down payment or other debts.
Instead, keep your wedding budget within your pocket where you can afford to pay.
DO: Explore first-time home buyer grants and loan options
Many states provide assistance to first-time home buyers in the form of tax credits and subsidies.
You also need to consider loan options and find the one that best suits your needs. For example, if you live in the suburbs or rural areas and earn less than 115% of your local household income, you can reduce by 0% and qualify for a USDA loan.
Alternatively, if your credit score makes buying a home seem like a distant goal, it could be a good fit for an FHA loan. These mortgages, backed by the Federal Housing Administration, have a minimum of 500 people on a 10% down payment or a 580 credit score on a 3.5% down payment.
Don’t: Wait until you save 20% down payment
The advice you may have heard you need to save 20% of your home’s expenses for a down payment is outdated. You may be much closer to giving a house than you think. Traditional loans – the most common mortgages – only have the minimum down payment requirements for first-time home buyers.
According to the National Association of Realtors, $404,400 (median price as of December 2024) would be equivalent to $12,132. If you and your partner can clean up $350 a month, you can save enough for this down payment in just three years.
With that in mind, you can approach your homeownership goal in almost a year by reducing costs by choosing a DJ over a live band at your wedding reception.
DO: Take advantage of tax savings
Talking with a tax professional about your wedding planning before the big day can help you find deduction opportunities.
“We are committed to providing a range of services to our customers,” said Abigail Wright, senior business advisor and tax specialist at chamberofcommerce.org in Gainesville, Florida. Even if it’s a small amount, these tax savings can go directly to your home buying fund.
Tax professionals can also help you determine whether buying a home before getting married can provide tax benefits. Howard Hook, principal of EKS Associates in Princeton, New Jersey, said that “single” individuals have an advantage over married couples, as standard deductions are higher for married couples than for individuals submitting individuals. It could be, Howard Hook says.
If you can maximize your tax payment by purchasing a home before planning your wedding, returning home could potentially make up for your important fund.
There is essentially no right decision when it comes to buying a house or getting married first. It’s entirely up to you and your partner. Either way, by developing a careful strategy, you can afford to do both on a timeline that works for you.
Taylor Getler writes for Nald Wallet. Email: tgetler@nerdwallet.com.
