Your state and perhaps local governments may offer down payment assistance programs as well. For instance, in my native Minneapolis, the Minnesota Homeownership Center has a handy Down Payment Assistance finder that tells prospective homeowners about down payment financing and non-financial assistance resources available in their areas. In California, Golden State Finance Authority provides direct, need-based grants (with some strings attached) worth up to 5% of the loan amount – not an insignificant sum in pricey California metro areas like San Francisco and Los Angeles.


Paying off credit card debt isn’t always straightforward, though. Focus on your highest-interest debt first (debt avalanche method), even if that means putting as little as $25 or $50 extra toward your payment each month. As your high-interest debt load shrinks, you can move onto lower-interest credit card debt, and you’ll likely accelerate your progress toward a $0 balance. With lower (or no) interest charges eating into your spending and saving power, you can then direct your dollars toward your down payment fund.
Many financial experts agree that having saved up a down payment is a good sign that buyers are ready for homeownership. If you can make the necessary sacrifices to amass a down payment, lenders take this as a sign that you’ll likely be able to manage your finances to pay the expenses that come with owning a home, including monthly mortgage payments, repairs and property tax.

Deciding whether you want to buy a house involves taking a good, hard look at its structure and its features, but there are many other topics that are every bit as important to your purchase. You might want to consider having a home inspection to flush out hidden problems, or even talk to the neighbors to get firsthand opinions of the neighborhood.
If you and your spouse both have IRAs, you can both withdraw up to $10,000, for a total of $20,000. Depending on the projected size of your down payment, that could be a sizable boost. And, on Roth IRAs held longer than five years, you can withdraw tax- and penalty-free contributions in excess of $10,000, though any withdrawn earnings are taxable at your normal rate.

Authentic craftsman detail and luxurious modern finishes coexist in this open & airy home in popular Lafayette Park. A stately fireplace with vintage tile and built-in shelving anchors a bright white, open living space with rich hardwood floors, wood frame windows, and crown molding. In the open kitchen, custom cabinetry, black hardware, and a farmhouse sink recall the craftsman era. The playful geometric tile backsplash, countertops and stainless appliances assure the kitchen has one foot firmly rooted in the present, providing a modern functional work space. A charming bathroom features custom tile, black fixtures and a pedestal sink. There are two sunny bedrooms, one with sliding French

Let the serious shopping begin! By now you’ve talked things over with your agent and you both know what you really want and need in a home. Armed with this, your price range and knowledge of the local area, look at listings online and with your agent, who will come up with properties for you to tour. Chances are you’ll discover some new things to love or hate about homes and refine your search.
Outside of these Fannie Mae, FHA, VA and USDA loan types, there are state and local assistance programs that can help you get into a home with a low-down payment. There are also towns that offer incentives to move there, ranging from student loan forgiveness to free lots of land to build on. Even though these programs don’t cover your down payment for you, they can help you save money elsewhere if you can come up with the initial down payment up front.
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