Another option for a down payment is to get a Gift from a relative. The relative must be in your immediate family. Often when all or part of your down payment is in the form of a gift the lender will have some additional requirements. The lender will ask for a gift letter, which states the relationship of the person giving you the gift and it states that it is not a loan. The lender may also "source" the funds, meaning they ask for documentation to show where the money is coming from. They may also "season" the funds, meaning they would need documentation of how long the funds have been available.

There are also many private and government down payment assistance programs available to help buyers. These are usually in the form of a grant and do not need to be paid back.

Most homes are bought with 0% down, so you would only need money for closing costs. These loans can be a single loan for 100% of the purchase price or 2 loans, one for 80% and the other for 20% of the purchase price.

If you choose to use your own money for a down payment, it will usually have to be seasoned for 60 days.

Some people use the proceeds from the sale of a previous home to fund their down payment for a new home. If you have recently sold your home and deposited the proceeds into a checking or savings account, your new lender will probably want to verify the source of those funds. A common way to prove the source of the funds is by providing your mortgage broker with the HUD1 settlement statement you were provided with at the closing of the sale of your last home.

There are some lenders that now do not require any sourcing or seasoning of funds. This can help many people out when purhcasing a home.