No down payment loans were available a few years ago, but after the housing crash those loans have all but disappeared from the market. Today you’ll probably have to come up with a down payment to prove to the lender that you are serious and do have some finances on your side.
One way to come up with a down payment is the good old fashioned way of saving. Tuck aside every spare dollar that you can. You’ll need some spare cash after the house is purchased too so this is a good habit to establish.
Borrow from Savings
If you have money tucked away in stocks, a 401K plan or another retirement plan you may want to zap those funds and use them as your down payment.
Look for public programs or governmental assistance that is set up to help homeowners come up with a down payment. There are a number of different programs and you might be surprised at what you qualify for.
Putting up a sizeable down payment means you can borrow less money for the home, you will get a lower interest rate, more mortgage lenders may want your business, you’ll pay less mortgage insurance, and you may be able to totally avoid PMI payments.