Saving for a Down Payment
Ready to unlock the door to your first home? Buying a home is an exciting step towards financial growth. There are flexible down payment options available. Doing your research and consulting with a licensed loan officer are important steps to take as you begin your path toward homeownership.
Affordable Down Payment Options
- FHA Loans: Down payments as low as 3.5%.
- Conventional Loans: As little as 3% down with good credit.
- VA Loans: No down payment required.
- USDA Loans: No down payment required.
State & Local Assistance
- Government, foundations, non-profits, and employers may offer down payment assistance.
- Often zero-interest forgivable loans.
- This may include lower mortgage rates or tax breaks.
- Income and home price limits may apply.
Explore Your Options
- Research programs in your area.
- Speak with a licensed loan officer.
- Consider low down payment mortgages.
Boosting Your Down Payment
Family Gifts
- Over 25% of young home buyers use gifts from relatives or friends.
- Lenders accept this but require documentation proving it's a gift, not a loan.
Retirement Savings
- 401(k): Withdrawals allowed but taxed + 10% penalty. Loans may be available.
- Traditional IRA: Up to $10,000 can be withdrawn for a first home (taxed, no penalty).
- Roth IRA: Tax-free withdrawals for first home after 5 years.
It's always a good idea to consult with a tax or accounting professional before moving forward. Visit our step-by-step guide to homeownership and get started on your journey.
Stay one step ahead