1. Personal Savings. This is the most common and obvious source for a down payment.
2. Zero Down Payment Loan Programs. There are zero down payment loan programs such as the VA military home loan program. This program is for active duty military as well as veterans and it’s fairly easy to qualify for the program.
4. Borrow From Your 401K. Borrowing from your 401K is borrowing from yourself, interest rates are low and you re-pay yourself via payroll deduction. You should check with your plan administrator for specifics on taking out a loan to buy a home.
6. Down Payment Assistance and Grant Programs. There are state agencies and programs that exist to help you with your minimum down payment and/or closing cost requirements.
8. Proceeds from Sale of a Home. If you are moving up to a larger home or have a vacation home to sell you can use the proceeds from the sale as a down payment for your next home.
10. Sell a Car, Motorcycle, or Other Assets. If you have assets that you seldom use, sell them and use the money as a down payment. Make sure you make copies of the title and document the sale.
11. Tax Refund. This is pretty straightforward – use your tax refund as a down payment.