Wallet Watch newsletter: Shopping for a home? Here are a few ways to save
Long Island home prices surged to record highs in August, OneKey data showed.
Shopping for a house can be expensive. Just ask Katie Masters and her fiance.
The couple has made three offers as they search for their first home, paying around $600 for an inspection at one house they ultimately walked away from. Their search continues, and so will the expenses.
At every stage of the process, buying a home costs money — while shopping, making the deal and long after you get the keys, reports Rachel Weiss and Arielle Dollinger. But there are ways to save.
- Shop around for a mortgage lender. Some provide closing-cost assistance or first-time home buyer incentives, and you should compare rates and the value of any lender credits.
- Look for payment assistance programs from the town or county in which you're shopping. The Long Island Housing Partnership in Hauppauge offers counseling and can help you understand your eligibility.
- Check if your employer participates in the Employer Assisted Housing Program, an initiative run by LIHP that supplements the down payment of eligible buyers with federal and state funds, and employer contributions.
- You may also qualify for the State of New York Mortgage Agency's Down Payment Assistance Loan, which lends between $1,000 and a maximum of either $3,000 or 3% of the home purchase price, up to $15,000 — whichever is higher — at a 0% interest rate, according to its website.
Read more tips and tricks on how to cut costs here. Did we miss anything? Do you have any follow-up questions? Reach out to walletwatch@newsday.com and we might answer in a future newsletter.
From our readers
Drew Martin from Facebook asks:
How are first time buyers coming up with the down payments to avoid PMI? Is it legal, parental or shady?
For those unfamiliar with the home-buying process, PMI, or private mortage insurance, is a type of insurance to protect the lender. A homebuyer might be required to purchase PMI if their down payment is less than 20%.
In 2025, the median down payment for first-time home buyers was 10%, according to the National Association of Realtors. Among first-time buyers, personal savings was the most common source of funding for a down payment that year, the association noted. Around a quarter, 26%, drew from financial assets like 401(k)s, IRAs or stocks. About one in five, or 22%, had help from friends or family in the form of a gift or loan.
"Not surprisingly, younger millennials are the generation most likely to rely on gifts from family as a source for their down payment," said Shaan Khan, president of the Long Island Board of Realtors, in an email. "On the other end of the spectrum, we're also seeing a rise in younger high earners, who may not have accumulated the assets for a 20% down payment, but their salary allows them to comfortably make the loan payment. These buyers may not see PMI as a major obstacle because they are better positioned to absorb the cost."
Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.
Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.
