Down payment funding alternatives
For many buyers, especially first-time buyers, saving up the funds for the down payment can be a seemingly insurmountable hurdle to home ownership. This doesn’t have to be the case. As your mortgage lender, we can help you find creative ways to come up with your down payment.
Using a gift for your down payment
One way to fund a down payment is by using a gift. For many loan programs, a gift may be used for a portion or all of the required down payment. Money given as a gift for a down payment can’t come from anyone. Family members are the most highly acceptable source for a gift. There are other acceptable gift donors. Be sure to just ask and we will let you know what is acceptable by underwriting. Another great gift type is what is called a gift of equity. This is when a family memeber is selling you a home but gifting the equity therefore avoiding a down payment entirely. Always talk to an experienced mortgage professional when working out a gift or gift of equity as it can be complicated. We are very experienced with gift of equity down payments.
Please contact us at any time to brain storm about down payment options. Thank you.