Down Payment Sources

Can you give me some ideas on how to obtain the needed funds to pay the down-payment?

1. You don't always need any cash to buy a home. For example
a. If you qualify for a VA loan and if the price of the home you wish to purchase is below the maximum allowed, no money down is required, if you write into the contract that the seller pay the closing costs (but you will need to come up with, in the short-term, earnest money)
b. Also, if you have excellent FICO scores, you may qualify for two loans that equal 100% financing with no primary mortgage insurance requirement.
2. Savings Tip:
a. Closing costs can be 3% to 6% of the cost of the home, and many brokers require 5% to 10% earnest money down in two up-front payments when the offer is made (before financing is obtained);
b. Plus 20% of the cost of the home will need to come from savings, so you will finance 80% of the cost.
c. Total savings required can be 26% of the cost of the home. For example, for a $100,000 home you'd need $26,000 in savings to equal 26%.
d. Some loans allow 97% financing - be sure to ask if you qualify if 20% is in the too-hard-to-do category.
3. Proceeds from the sale of a home
4. Parents (gifts, loans, pre-inheritance, borrow against the equity in their home)
5. Borrow from a 401-K or company plan
6. Borrow against your insurance
7. city-county, state or federal low-income housing loans or first-time buyer loans
8. private investor you buy out later.