Farm Raised Family | Financial Planning Series – Article 7
Saving for a Home
Whether you dream of buying a farmhouse, building on inherited land, or upgrading from your current home, saving for a home is one of the biggest financial steps a family can take. And for many farm families, the dream comes with extra layers—like fencing, barns, acreage, or building from scratch.
The good news? With some planning and persistence, your family can move from “someday” to move-in day.
🛤️ Saving for a Home – Step 1: Get Clear on Your Dream
Start by answering a few key questions:
- Are you buying an existing home or building a new one?
- Do you want acreage or a small parcel?
- Are you staying close to family or moving to a new area?
- Will this be a primary home, homestead, or business base?
Having a clear vision helps guide your savings target and timeline.
💰 Saving for a Home – Step 2: Know What You’ll Need
There are more costs to homeownership than just the purchase price.
| Type of Cost | Examples |
|---|---|
| Down Payment | Typically 3%–20% of the purchase price |
| Closing Costs | 2%–5% of the loan (lender fees, taxes, insurance) |
| Land Prep/Utilities | Well, septic, electric, road access (for builds) |
| Permits & Surveys | Zoning approvals, property line verification |
| Move-in & Furnishing | Appliances, furniture, initial repairs |
For builders: Don’t forget architectural plans, site clearing, construction loans, and weather delays!
🧮 Saving for a Home – How Much Should You Save?
As a starting goal:
- Down Payment: Aim for at least 10%–20% to avoid private mortgage insurance (PMI)
- Emergency Fund: Have at least 3 months of expenses saved in addition to your home fund
- Extras: Budget another 5–10% of your purchase/build cost for unexpected issues
🛠️ Saving for a Home – Saving Strategies That Work
1. Open a Dedicated Home Fund Account
Keep it separate so it’s not accidentally spent. Label it clearly and track it visually for motivation.
2. Set a Monthly Contribution Goal
Even $100/month adds up. Look for ways to cut expenses or boost income just for this fund.
3. Use Farm Side Hustles
Sell extra produce, crafts, eggs, or handmade goods with all proceeds going to the home fund.
4. Apply Windfalls
Tax refunds, bonuses, or farm sale profits? Drop them straight into your savings goal.
🌾 Building on the Farm? Here’s What to Watch For:
- Financing can be trickier. Not all lenders do construction or land loans. Find a local bank that understands rural builds.
- Start with a site plan. Know where utilities will go, what zoning rules apply, and how much land is usable.
- Consider modular or manufactured options. These can be more affordable and quicker to complete than custom builds.
📋 Pro Tip:
Get pre-approved before you shop. It tells you how much you can afford and shows sellers you’re serious. If building, talk to lenders about a construction-to-permanent loan, which rolls your build loan into a mortgage once complete.
🧭 One Step at a Time
Saving for a home may feel slow—but every dollar you set aside moves your family closer to planting roots. Whether it’s a farmhouse on a hill or a new build on family land, your future is worth saving for.
✍️ Up Next:
“Investing in Their Future: Education Funding Options for Kids”
Let’s break down how to prepare for your children’s education—from 529s to trade schools and everything in between.
We have multiple new series starting now to give you the best in information concerning financial matters for families. Join our community so that you never miss anything, plus get some great exclusive insight!
MORE WAYS TO CONNECT
We also, as a homesteading family, have a variety of blogs that might interest you. A Life on the Farm focuses on the more personal side of the homesteading life. We discuss subjects like family, parenting, relationships, homeschooling, cooking, canning and so much more.
Two Oaks Farm Talk concerns the more technical side of homesteading. We discuss subjects like gardening, food prep, and farm building and construction with lots of tutorials!
Farm Raised Family is basically a hub for everything under the Two Oaks Farmstead umbrella. You can learn a great deal about all parts of the farmstead there. The Farm Raised Family blog focuses on financial matters such as budgeting, saving, and more and on current events affecting families.
You can also have a more in depth look at all that we do by visiting our Two Oaks Farmstead YouTube Channel and be sure to subscribe so that you don’t miss a thing!
Farm Life and Freedom is the new podcast we are in the process of launching! It is going to be so much fun! You could also check in with our Farm Life and Freedom Youtube Channel.
Two Oaks Farmstead is the farm store… the one that holds the umbrella! Check us all out and join us, not only on our blogs and Farm Life and Freedom podcast but come join the fun on Facebook, Instagram, Twitter… wherever you get social!
