Owning a home is a big part of the American dream. Unfortunately for first-time home buyers, the housing market has surpassed the high point it hit in 2007, before the downturn. Mortgage interest rates are also on the rise, creating a double hurdle for anyone wishing to purchase their own home. It has also gotten harder to qualify for FHA loans, which help you buy a home with less than the recommended 20 percent down. Even with these hurdles, however, it is still possible for you to own a home in two years.

Aim for the 20 percent

With the recent reversal of the FHA loan premium reduction, it is harder than ever for first-time homebuyers to buy a home without putting 20 percent down. Although putting down 10 percent, while also paying private mortgage insurance (PMI) every month, may seem an easier path to homeownership, it is not the smart decision. Having a 20-percent down payment makes a bank more comfortable in qualifying you for a loan, and makes a seller more comfortable in accepting your offer because they know you will more than likely qualify for a mortgage.

The challenge of even qualifying for a loan without having 20 percent of the down payment puts the prospective homeowner in a precarious position. Should home values decrease as rapidly as they did in 2008, putting less than 20 percent down on your home will make you more likely to be underwater on your mortgage, with you owing more on the house than it is worth. In some instances, even if home values don't decrease, and only stagnate, putting down only a single-digit percentage and paying PMI can put you underwater as soon as a few month after purchase.

Side Hustle

To get to your down payment goal faster, take on a second or third part-time job. Doing catering on the weekends, pet sitting, babysitting, working as a server in a restaurant, or driving for Uber or Lyft are all good options for making some extra cash on the side. The trick to side hustling is to do it often, and do it consistently. Even if you only make $80 on a Saturday at a coffee shop, if you do it every weekend for two years, that comes out to over $8,000, which is a good chunk of a down payment.

Move

Most people spend upwards of 50 percent of their income on housing each month. Decreasing your monthly housing costs can mean big growth in your down payment fund. The best way to do this is to move in with parents, in-laws, or other family members. If they agree to it, pay a token amount of rent, or ideally, no rent at all.

An expiration date will make this situation is easier for both parties. Figure out how long it will take you to save a down payment, and communicate to family members your home ownership goals, as well as a timeline for meeting these aims.

If you don't have parents or relatives nearby, or if you'll find it too detrimental to your mental well-being to move in with them, you need to find a place with cheaper rent. If you have to live alone, look for a basement or ground-level apartment, as those tend to be cheaper. If you don't mind living with roommates, find a house to rent with at least three other people. More individuals under one roof will mean more people to split costs. Another option is to move farther away from the job center; housing usually costs less when it's farther away from an urban area. Be careful not to go so far away from your job that your transportation costs cut into any savings you gain by moving further out.

Saving for a down payment can seem daunting, but it's doable. Increasing your income with a side hustle or two, and decreasing your current housing expenses can help you reach your goal more quickly. Having that 20 percent to put down on your own home will set you up for a future of successful home ownership.