14 Sources of Down Payment Money

The thought of having to save up for a down payment of 20% on your new home purchase may seem daunting, and even impossible, but that's okay! Your first home is likely the largest purchase you will have ever made, so it's completely normal to be nervous. Luckily, you don't always have to put down 20% on your home purchase; there are certain types of loans that will allow you to put down 10, 5, 3% or even zero in certain cases! Always check with your mortgage lender for all your options, but here are a few sources of down payment money you may not have thought of.


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Your Employer

Check to see if your company offers home-buying or relocation assistance. If you are moving for a new job, chances are your new company will help with some of your expenses.


Friends and Relatives

Ask those near and dear to you if they would be willing to offer you a gift, or a small loan to use towards your down payment..


Your Local Government, City, or County

Google your city, county, and state for .gov sites that offer down payment assistance programs. Your lender will also know which of these you may qualify for.


Tax Refund

Forego the spending spree and bank your refund instead!


A Second Job

Work a few hours a week driving or making deliveries: make use of specific skills by picking up freelance work online.



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Reprioritized Expenses

Redirect unnecessary costs to your down payment fund: Bring lunch from home, cut back on your subscriptions, work out at home, etc.


Garage Sales

Get a jumpstart on packing by offloading unwanted items.


Online Selling

Sell your more unique or collectable items on eBay or LetGo, and use Craigslist or Nextdoor to sell other items more locally.


High-Yield Savings Account

Move down payment funds from your no-interest checking account to an interest-bearing savings account. You should also talk to your financial advisor to see what makes sense for you.


Spend-To-Save Programs

Sign up for bank programs that automatically transfer funds from your checking account to your savings account when you make debit or check card purchases.



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Cash Rewards Credit Card

Switch to a credit card that pays cash-back rewards instead of merchandise or service points.


Retirement Account

Ask your financial adviser if it’s possible to borrow some funds from your 401(k) or IRA.



Sale of Stocks or Other Investments

Parse your investment portfolio for stocks, bonds, mutual funds or securities that you can liquidate, with your financial advisor's input of course.


Sale of Previous Home

If you’ve already sold your existing home–or plan to–your built-up equity could make a sizable contribution to your down payment.


Need additional advice on the home buying process?

Email Stacy for more help! stacy@stacywardrealtor.com