A Few Ways You Can Make a Down Payment

Today I want to share 20 things you can do to make a down payment on your home:

1. Cash saved in a traditional bank or asset account. This will include accounts like checking, savings, money market accounts, and certificates of deposit.
2. Cash gift from a family member. There is a lot of info you’d need for this one, so I’ve included a link to one of my videos, “How to Document Your Assets.”
3. Gift equity. One of my favorites! You can be given a “Gift of equity” from a family member who is also the seller of the property.
4. Cash gift from an employer or labor union. This is usually to help with relocation for a job or an employee assistance program. 
5. Cash gifts accumulated in a Homeownership Bridal Registry Account.
6. Cash gift from a charitable organization.
7. Cash gift from a government agency. This might be called a home-buying grant or down payment assistance program.
8. Cash from the sale of personal property items. This could be baseball cards, a car, or…
9. Proceeds from the sale of your prior home.
10. Trade equity. This is where you can trade your real estate or raw land to the seller as part of the cash investment.
11. Rent credit or funds from a lease-to-own contract. This is defined as the cumulative amount of rental payments that exceed an appraiser’s estimate of fair market rent for the home you are going to rent to own. Also, you can ask your lender to consider these funds as an accumulation of your cash investment.
12. Secured loans against other assets like a Cash Value Life Insurance Policy, savings account, money market, mutual fund account, 401(k), IRA, or stock. These are great because…
13. You can also use a secured loan against other properties you own.
14. A collateralized loan from a non-family member. For example, you could take out a loan against your car.
15. A second mortgage provided by a family member or state agency, such as MassHousing.
16. Cash accumulated with a private savings club.
17. If you’re a licensed real estate agent, you may use your commission from your purchase transaction.
18. Disaster relief grants and loans from governments. These are pretty uncommon.
19. Employer assistance housing programs where they provide second mortgages.
20. Sweat equity on the property being purchased. Repairs must be called for by the appraiser, the borrower must show proof qualified to do work, and receipts must be provided. 

If you have any questions about today’s video, please call or email me. I’d love to help!