Like any type of loan, the amount you have available up front can play a major role in the loan you may qualify for, plus the amount you’ll need to pay off. Down payments typically range from 3 to 20 percent of the sales price for property. Thankfully, there are a number of smart ways to procure your down payment:
- Save
- Borrow from your retirement plan
- Monetary gifts from family
- Move/relocate to more affordable housing
- Reduce your outstanding debt
- Strike a lower deal with the seller
- Sell stocks/investments
- Obtain additional employment
- Skip vacations and entertainment expenses
Alternative methods:
- FHA loans
- VA loans
- Piggyback loans
- “Carry back” mortgages
- Housing finance agencies