The thought of coming up with a down payment on a new home can be overwhelming! While a down payment on a traditional loan is usually 20 percent, there are VA, FHA, and conventional loans that do have lower down payment options. The downside of these loans is they often come with additional expenses such as mortgage insurance or a funding fee. Loans and gifts from family members are another source of funds for a down payment, however, the giver usually has to provide proof of their contribution to the lending institution.
- Try to find out if you can get low down payment mortgages.
- There are various types of payment assistance you can get from your state or local town
- Sometimes you can get first home type of gifts, try to get items that you would normally buy so you can use that money on the mortgage.
“Conventional loans, which aren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.”