Like any type of loan, the amount you have available up front can play a major role in the loan you may qualify for, plus the amount you’ll need to pay off. Down payment requirements range from 3 percent to 20 percent of the sales price for property depending on the number of units, credit score, mortgage program and residency. i.e. a primary residence conventional loan can be as low as 3$ down ; where an investment property for a single family home requires a minimum of 20% down. Research your mortgage options.

Thankfully, there are a number of smart ways to procure your down payment:

  • Down Payment Assistance Programs
  • Save
  • Borrow from your retirement plan
  • Monetary gifts from family
  • Move/relocate to more affordable housing
  • Reduce your outstanding debt
  • Strike a lower deal with the seller
  • Sell stocks/investments
  • Obtain additional employment
  • Skip vacations and entertainment expenses

IMPORTANT NOTE: CASH is not a valid source of down payment. Gifts from relatives in the form of CASH are also not a valid source of down payment. The reason is that ALL the funds used for a mortgage transaction must be originate from legitimate sources. i.e. verified employment income, retirement accounts, down payment programs etc… These sources of assets can sourced from its origins; meaning the lender can see where the money came from. Unfortunately CASH is a type of transaction that Can Not be sourced and hence any cash deposits must ne backed out of a borrower’s qualifying assets.