Down Payment

Your down payment is a percentage of the value of the house you want to buy.  In the past, saving money for a down payment on a home was often the largest obstacle to home ownership . Lenders often required a minimum of a 20% down payment.  But today's flexible home loan programs make this issue less of a challenge, and some programs allow you to put very little down (3% or less). You may qualify for programs that don't require down payments at all.  Many homebuyers are eligible for the American Family Funds Down Payment Gift Program .

Funds for your down payment can come from the following sources:

· Savings account, bonuses, and commissions
· Mutual funds
· Securities
· Proceeds of life insurance
· IRA, 401(k) or Keogh funds
· Government grant programs and subsidized secondary financing
· Gift money from a relative - Some mortgage lenders may require that a certain amount of the down payment come from documented savings that you have accumulated personally.  Ask your lender about their gift money requirements.
· Charitable organization gift programs like American Family Funds.   In order to receive a gift from American Family Funds you must qualify for a FHA Mortgage.  FHA is a government program that is the most flexible of all mortgage programs available. To qualify you must have:

1. Good Credit

2. Two years employment in the same field (sometimes less)

3. Limited monthly bills

4. Purchase a home within the FHA Loan Value Limits (click here to check the limits for your area)  https://entp.hud.gov/idapp/html/hicostlook.cfm

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