June is National Homeownership Month—a time when “dream home” conversations tend to bubble up more frequently around dinner tables and in client meetings. Whether it’s your first home, a move-up purchase, or a retirement downsizing strategy, the excitement of buying is often matched by a more stressful question:

Where should the down payment come from?

It’s a deceptively simple dilemma. You might have a brokerage account that’s grown nicely over the years. Or maybe you’ve been saving diligently into a high-yield savings account and you’re this close to hitting your goal. Now you’re wondering: Should we tap our investments and move forward, or keep saving until we hit the number the old-fashioned way?

There’s no universal answer—but that doesn’t mean you’re stuck. This is the kind of crossroads that’s as emotional as it is financial. Let’s walk through what’s really at stake, and how to think about this in a way that respects both your long-term plan and your life as it stands today.

Why the Down Payment Feels So Weighty

A down payment isn’t just a number. It’s a decision that shapes everything else in the homebuying process—your mortgage terms, monthly payments, and even your future flexibility.

Putting more down usually means a smaller loan, better interest rate, and a more comfortable monthly payment. It can also be a way to avoid private mortgage insurance, which is a recurring cost that doesn’t go toward equity. But it’s not a one-way win.

That money has to come from somewhere. And if you’re considering selling investments to fund it, there’s a bit more to the story than just transferring funds.

Selling Investments: A Fast Track With Tradeoffs

Selling from your taxable investments might feel like the logical shortcut—especially if you’re sitting on appreciated assets and don’t want to wait another year or two of saving. The speed is appealing. So is the idea of locking in a home purchase before interest rates rise or prices climb even higher.

But every gain has a tax tag attached. Long-term capital gains rates might be lower than ordinary income tax, but they still reduce your available cash. And if some of your investments have done especially well, the tax impact might be steeper than expected. Then there’s the psychological piece—watching your portfolio shrink overnight, even for a good reason, can leave you uneasy.

There’s also opportunity cost. That $75,000 you pull out today could have kept compounding. Over 15 or 20 years, the difference between keeping it invested versus using it for a down payment can be substantial—especially when compared to the relatively slow pace of home appreciation in some markets.

That doesn’t mean it’s the wrong move. It just means you’ll want to pause and weigh more than the “Can we afford it?” question. Ask yourself: “What are we giving up in the long term by doing this now?”

The Patience Play: Keep Saving and Wait It Out

The other option—keep saving—might not be as exciting, but it has its strengths. You’re not disturbing your investments, you’re avoiding tax surprises, and you’re letting compounding continue to work in your favor.

There’s something to be said for walking into a home purchase without feeling stretched. The peace of mind that comes from a full emergency fund, untouched retirement accounts, and a down payment built over time can be powerful. For some, it’s worth the wait.

But markets and housing prices don’t always sit still. If prices in your target area are climbing quickly, the home you want today could be out of reach by the time your savings goal is met. Waiting could mean borrowing more later, at a higher interest rate, for a home that costs more—something that could offset the benefit of preserving your investments.

There’s also life itself. Kids, job changes, medical needs—things don’t always unfold on a predictable savings timeline. That makes it even more important to stress-test your plan before committing to “just a few more years” of saving.

A Blended Approach: When “Both” Makes More Sense Than “Either/Or”

Here’s the thing—financial planning isn’t binary. Most of the clients we help through this dilemma land somewhere in the middle. They might sell some long-term holdings with minimal capital gains, while continuing to save monthly. Or they’ll use cash bonuses, RSUs, or even tax refunds to supplement what they already have saved.

Some choose to keep investment accounts intact and look elsewhere for funding—a gift from a family member, a modest 401(k) loan, or even a smaller down payment with plans to refinance later. The goal isn’t to eliminate tradeoffs. It’s to make sure the tradeoffs you’re making are ones you’re comfortable living with.

That’s the nuance that often gets lost when you search for answers online. Algorithms don’t know your risk tolerance, or how you feel about taking on a mortgage in a volatile job market, or what your five-year life plan looks like. But those things matter—often more than the math.

Questions Worth Sitting With

If you’re facing this question right now, start with this:

• How would using investments affect our long-term goals—retirement, college funding, or even early career changes?
• Are we emotionally prepared for market volatility if our portfolio is smaller going forward?
• What happens if housing prices keep rising faster than we can save?
• Will a higher mortgage payment strain our monthly budget—or our peace of mind?
• Are we looking at this home purchase as a lifestyle choice, an investment, or both?

And—because this comes up more than you’d think—do we both feel the same way about this decision?

It’s not unusual for partners to come into this with different priorities. One may be more focused on opportunity cost and long-term growth. The other might be more attuned to stability, lifestyle, or debt aversion. Neither is wrong. But these are conversations worth having early, before Zillow listings turn into mortgage commitments.

What We Tell Our Clients (and What We’d Tell You)

There’s no award for making the “technically correct” decision if it leaves you feeling stretched, exposed, or regretful. What we want for our clients—and what you deserve—is a choice that’s both financially sound and emotionally sustainable.

At Suttle Crossland, we walk clients through these moments with a full picture in mind. We run the projections, sure—but we also listen to the undercurrent of what you’re really trying to achieve. Owning a home can be a milestone, a stepping stone, or a legacy move. Whatever it is to you, we’ll help you get there with confidence.

Thinking about buying, but unsure where to pull the funds from?

Let’s talk. Whether it’s this month or next year, the best time to build a plan is before you need to act. You’ll walk away with a clear understanding of your options—and a lot less stress. Click here to schedule a consultation.