Loans and gifts can help with your down payment but you can not
use this strategy for all loan programs. The most popular program
for this tactic is the Federal Housing Administration or FHA. FHA
allows 100% gift funds for your down payment. The gift can be from
any relative or can be collected through new innovative programs,
like the Bridal Registry where couples receive money into an account
that can be used for the down payment.
Another popular tactic, which can be used in a wider range of
programs, is to borrow from your 401K program. If you have a 401K
program with your employer, you can withdraw without a penalty for
your down payment and pay it back over a specified period. There are
some drawbacks, the payment will be used in qualifying and your 401K
account will not continue to grow as fast. Even with these
drawbacks, it is often a smart move if this is your only option.
'I make good money, I pay my bills on time, but I can’t seem to save
enough money for a down payment.' Sound familiar? Check around, ask,
etc.. sometimes you can purchase a home with zero out of pocket. Now!