Building Your Down Payment

Many buyers can qualify for a loan but have little to contribute to the down payment.
There are options available, or a plan can be created to build a down payment.

There are currently 2 loan programs that do not require a down payment.

FHA only requires 3.5% down.

Slash your budget and build up savings.

  •  Be on the lookout for ways to reduce your monthly expenditures to save toward a down payment. You might also try enrolling in an automatic savings plan to automatically have a specific amount from your paycheck transferred into savings. Some effective ways to build up funds include moving into less expensive housing and staying home for your vacation this year.

Sell items you do not need and find a second job.

  • Look for an additional job. This can be exhausting, but the temporary difficulty can help you get your down payment. You can also get serious about the possessions you actually need and the things you may be able to sell. You may own collectibles you can put up for sale on an online auction, or household goods for a garage or tag sale. You might also research what your investments may bring if sold.

Borrow from your retirement plan.

  • Explore the details of your particular plan. Many people get down payment money from withdrawing from Individual Retirement Accounts or borrowing from 401(k) plans. Be sure you comprehend the tax consequences, your obligation for repaying the money, and possible early withdrawal penalties.

Gift Funds-Ask for help from family members.

  • First-time buyers sometimes receive down payment help from thoughtful family members who may be willing to help get them in their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your first home.

Stepping Stone Mortgage

NMLS-235749 ML-3770

1140 Willagillespie Rd., Suite 13
Eugene, OR 97401