How Do I Get The Down Payment for a House?

Often we want to buy a house however don’t think we have the funds required to make it happen. How do I get the down payment for a house?

a box made of money with a red bow ties around it. Get a gift for your downpayment for a house

Get a Gift

You can get a gift from a relative for the down payment and closing costs. They can even gift you the entire amount of the down payment, and many lenders will allow it, depending on your credit score and the lender’s loan underwriting guidelines. (Keep in mind, some lenders require documentation of gift money, such as a signed letter from the donor and verification of transfer of funds.

stack of money with an egg sitting on it will 401k written on the egg. Use your 401k for the downpayment for your house.

401(k) Loan

You can also borrow from employer-sponsored 401ks to fund your down payment. On 401k loans, borrowing limits are quite generous: You can borrow up to the lesser of $50,000 or half the value of the account. That’s enough to fund a 20% down payment on a $250,000 house, or a 10% down payment on a $500,000 house.

Rubber stand laying on its side with Loan Approved stamped over the words Life Insurance. Use Life Insurance for the downpayment for your house.

Life Insurance

If you have a whole life policy, you can either borrow or cash it in. Since most of these are purchased with after-tax dollars there may not be tax implications

Stack of money with a house sitting on it. Use Secured Loan for the downpayment for your house

Secured Loan

If you have an asset that is free and clear, such as a vehicle, you may be able to get a secured loan against the value of the asset. Other assets may include art, jewelry, and comic books. Really anything of value.

Hand holding a key and keyring with a house fob. Says Down Payment Assistance Programs. Use DPA Down Payment Assistance for the downpayment for your house

DPA (Down Payment Assistance)

Several government entities offer down payment assistance programs; and they aren’t all for first-time homebuyers. Check out the Texas State Affordable Housing Corporation (TSAHC) for more information on how you may qualify for this program.

Outline of a house with household items pictured inside. Use the sale of personal property for the downpayment for your house.

Sale of Personal Property

With verification of value and a bill of sale, the funds from the sale of personal property can be used for the down payment. Have a motorcycle you never ride? How about Grandpa’s stamp collection? Have a garage sale and get rid of all the stuff you don’t want to move with you anyway.

Ten clay cubes stacked on each other with the outline of a person on each one. Use programs from Human Resources for the downpayment for you house.

Human Resources

Some employers offer down payment assistance as a benefit to employees. These awards are eligible for down payment through FHA financing. Even if you think your employer is too small, or you won’t qualify, it doesn’t hurt to ask – it’s one work perk that can really make a difference when you need it the most.

3 blocks of money stacked on top of each other with the words Tax Refund sitting on top. Use your tax refund for the downpayment for your house.

Tax Refund

You can use this year’s tax refund to become a homeowner. A copy of this year’s tax returns and a copy of the refund check or bank statement showing the refund amount is all that is required.

Image of a target with a green dart on the bull's eye that says Second Job. The word "earnings" across the bottom. Use earning from a second job for your downpayment for you house.

Second Job

Get yourself a side hustle! Even though you may not be able to use this income to qualify if you haven’t had the job for two years, the cash earned from this second job can be used for the down payment. Pay stubs and bank statements can provide a paper trail to source the funds.

Image of a piggy bank with a hand putting coins in the bank. Use Savings and Budgeting for the downpayment for your house.


Cutting back on extras (that daily coffee drive-thru or breakfast taco), along with any of the above ideas, would get you into a home faster.

Published by Living In DFW

I guess you can take the girl out of Texas but you can't take Texas out of the girl. I was born here in Dallas and moved away at age 8. After 30 years of moving around the United States, as a child with the family and as an adult without them, I finally found myself back in Dallas. Since I returned in 2001 I have sold furniture for Crate&Barrel and Real Estate with Keller Williams. It is my hope to share with you what I love, question, and find interesting here in DFW.

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