With our current economy, one of the most challenging obstacles for potential homebuyers is obtaining the down payment. With recent years allowing 100% loans, it may seem that you missed out on a "golden" opportunity. In reality, those loans put homeowners in a situation where they didn't have any equity in their property. With a down payment of 10% to 20%, you will have instant equity in the property and your monthly payment will be lower. Depending on how much you put down, you may will pay less for monthly mortgage insurance and possibly even eliminate it altogether.

There are several ways for a home buyer to obtain the funds necessary to make their down payment. FHA loans will allow for a home buyer to put down as little as 3.5% and in some cases, they will allow for the seller to contribute towards the closing costs. Another source of down payment could come from your pension or retirement funds. Some retirement plans allow you to borrow against your plan and repay it through your paycheck each month at a very affordable rate. Other strategies include obtaining the funds from family members or selling big ticket items that are no longer being used.

These are only a few of the options to help plan for down payment on a new home. Your loan officer will be able to point you in the right direction and assist you with acceptable down payment sources.