Nearly half of house hunters don't think they can afford a home — these 4 tips can make it possible

With mortgage rates still at historic highs, 48% of US house hunters say they don't know if they'll be able to afford a home, according to a recent poll from personal finance site Credit Karma.

The study, which surveyed 1,249 adults between Nov. 20 and 26, 2023, also found that more than half (56%) of potential buyers aren't sure they can afford as much home as they planned.

Some are making concessions on square footage, according to Credit Karma, while others are rethinking neighborhoods and school districts. Nearly a third of buyers (30%) said that they are counting on money from family to help them seal the deal.

If you're having trouble affording your dream home, CNBC Select shares several tips to make that dream a reality.

• Bulk up your savings
• Build your credit
• Apply for grant and loan programs
• Secure an assumable mortgage
• Bottom line

The era of the 20% down payment is long gone, but homebuyers still have to shell out more to secure a sale than they have in years.

In 2023, the average down payment for first-time homebuyers was 8% of the home's full price, according to the National Association of Realtors. That's the highest they've been since 1997, when it was 9%. For repeat buyers, the average down payment was 19%, the highest since 2005, when it was 21%.

With housing prices still inflated, that can put a down payment out of reach for many.

One way to get a down payment together faster is with a high-yield savings account (HYSA), which can accrue up to 6% interest annually, compared to the 0.46% average from traditional savings accounts. While there are other ways to invest, most HYSAs allow you to withdraw funds at any time with no penalty.

Western Alliance Bank's High-Yield Savings Account yields 5.24% annually, with no maintenance fees or limits on withdrawals and only a $1 minimum required to keep the account open.

The UFB Secure Savings offers a 5.25% APY with no charge for opening an account, no monthly fees and no minimum monthly balance. There is an overdraft fee, but UFB offers overdraft protection for approved customers.

The better your credit score the more likely you are to get attractive mortgage terms. There are mortgage options for borrowers with credit scores as low as 500, but you'll likely have to put a lot more down and face much higher interest rates.

A FICO score of 620, considered "fair," is the minimum for a conventional loan. Even if you're doing better than that, taking six months to work on improving your credit score could cut your mortgage by hundreds of dollars a month. Focus on making on-time payments, polishing off existing debts and keeping your credit utilization under 10%.

For more help, there's Experian Boost, a free feature that links your Experian credit report to household bills not typically covered by credit-reporting agencies — like rent, phone and streaming services.

States, cities and financial institutions all sponsor programs to help homebuyers. Many are geared toward first-time buyers or those in lower-income categories. The US Department of Housing and Urban Development website has links to programs broken down by state.

In Georgia, the Georgia Dream Homeowners Program offers grants of up to $12,500 to homebuyers who have not owned a home in at least three years.

California's MyHome Assistance program helps buyers finance their down payments with loans of up to 3% of their home's value.

New York City's HomeFirst loan program offers up to $100,000 for a down payment to qualified applicants with a household income under $79,200.

Bank of America's Community Homeownership Commitment program provides grants of up to $10,000 for a down payment and up to $7,500 for closing costs.

Wells Fargo Dream Plan Home program provides up to $5,000 in closing-cost credits for borrowers whose income is 80% or less of the area median when buying a primary home in eligible areas.

If high mortgage rates are the main obstacle, you can try to get an assumable mortgage. Under this arrangement, the buyer takes over the seller's mortgage at the same interest rate.

With mortgage rates still elevated, that could save you some serious money. Your options are limited, however, as only government-backed loans like FHA mortgages, USDA mortgages and VA mortgages are assumable.

Even when mortgage rates and home prices are high, steps like boosting your down payment savings and credit score can get you closer to financing your dream home.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.