To afford a house with limited funds, prioritize saving for a down payment, improve your credit score, explore affordable loan programs, and adjust your home search criteria. Start by saving at least 10-20% for a down payment through budgeting, side hustles, or family assistance. Boost your credit score above 620 to qualify for lower interest rates and avoid high-risk loans. Leverage first-time homebuyer programs like FHA loans (3.5% down payment) or VA loans (no down payment for veterans). Expand your search to areas with lower home prices, consider fixer-flippers, or downsize to a smaller home.

Savings and down payment strategies are critical because 72% of first-time buyers cite affordability as their top challenge, according to the National Association of Realtors (NAR). A 20% down payment avoids private mortgage insurance (PMI), saving an average of $1,500 annually. Credit score improvements reduce mortgage costs significantly; a score of 620 vs. 780 can mean a 1.5% higher interest rate, costing $30,000 extra on a 30-year loan at 6%. FHA loans enable 3.5% down payments, helping 4.2 million buyers in 2022, per HUD data. First-time programs reduce barriers, with 44% of buyers using them in 2023 (NAR). Adjusting search areas can cut home prices by 15-30%, as seen in markets like Phoenix and Dallas, where median prices are 20% below national averages. Combining these steps increases affordability by 25-40%, as Fannie Mae estimates.