Top 10 Shortcuts to Get Your Down Payment for a Home

If you are wanting to buy a home, you need a down payment.   The down payment is the one-time, upfront amount needed by a homebuyer which is paid at closing and represents a percentage of the purchase price. Sometimes, saving up enough dough can seem a bit overwhelming.

The good news is you might not need to sock away as much money for a down payment as you think!  Today there are a couple of home loan purchase options available with a requirement of just 3% – 3.5% down payment.

While it’s not always easy, once you get started with a plan and a dose of determination, you’ll begin to see your down payment money grow.  Here’s 10 shortcuts to help you get your down payment money even faster.


Get a Gift – With FHA financing you can get a gift from a relative for the down payment and closing cost.

Heavy Dollar Sign on Google Android 6.0.1DPA – Several Government entities offer down payment assistance programs.  Some require being a first time homebuyer.  Others don’t.

?  Employer – Some employers offer down payment assistance as a benefit to their employees.  These awards are eligible for down payment through FHA financing.

Banknote With Dollar Sign on Apple iOS 9.3401K Loan – You can borrow the money from yourself.  In most cases this loan will not count against your qualifying debt to income ratio and as a first time homebuyer most 401K programs will allow this transaction.

❤️ Life Insurance – If you have a whole life policy, you can either borrow or cash it in.  Since most of these are purchased with after tax dollars, there are no tax implications.

Tax Refund – You can use this year’s tax refund to buy a home.  A copy of this year’s tax return and a copy of the refund check or direct deposit is all that is required.

⌛️  Second Job – Even though you may not be able to use this income for qualifying if you haven’t held the second job for 2 years, the cash earned from a second job can be used for the down payment on a home.  Pay stubs from the second job and bank statements showing the deposits can provide a paper trail to source the funds.

?  Sale of Personal Property – With verification of value and a bill of sale, the funds from the sale of personal property can be used for the down payment. Be sure to keep copies of all your paperwork.

?  Secured Loan – If you have an asset that is free and clear, such as a vehicle, you may be able to get a secured loan against the value of the asset.  Before doing so, you’ll want to make sure your debt ratio will still be within guidelines after the new payment is added to your liabilities.

☔  Savings/Budgeting – Cutting back on extras – such as cable & latte’s – along with any one of the above ideas, would help you become a homebuyer faster.

By combining a few of these ideas, you’ll be quickly on your way to becoming a homebuyer and having enough money for the down payment on your home purchase!

About Elizabeth Rose

Elizabeth has over 30 years in the financial and mortgage industry. In tune with the mortgage market, she provides refreshing, unrivaled knowledge leveraging expert resources and delivering results.
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