Down Payment Mortgage Options
 here are a number of home mortgage loan programs for people who don't have the available cash to make a 20% down payment for their home mortgage loan.
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| Commercial mortgage loan programs |
| Most first time home buyers use a commercial program to guarantee their mortgage. It is fairly easy to qualify for these loan programs, but they can be expensive. |
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- Private mortgage insurance
You can pay an insurance company to insure the mortgage loan. If you default, they pay the mortgage lender the balance of your loan.
- 80-15-5/80-10-10: Piggy back loans
You put 10% down, get one mortgage loan for 80% of the purchase price and another second mortgage loan for 10% at a higher interest rate.
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| Government mortgage loan programs |
| There are a number of state and federal mortgage laon programs designed to help people make a down payment. Each loan program has different criteria for loan eligibility. |
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- FHA mortgage loans
With an FHA mortgage loan, you can put as little as 3% down payment, but there are lots of limitations on who qualifies for the mortgage loan.
- VA mortgage loans
If you are a US military veteran you may not have to make a down payment. For a fee, the federal government will guarantee your mortgage loan as long as it falls within limits.
- FmHA mortgage loans
Buying a small rural property? Get on a waiting list for a FmHA mortgage loan and the government might subsidize your purchase.
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| Other mortgage loan options |
| Commercial or government home mortgage program not going to do the trick? There are a number of other options available for your mortgage loan. |
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- Family gift
Any gifts or loans from your family need to be documented if you're using them for the down payment on a mortgage loan.
- Seller and broker financing
If you're in a buyer's market, you may be able to borrow from the seller or from your real estate broker.
- Find a private investor
There are investors who might be willing to buy the home with you.
- Get a house mate
If you can stand living with a house mate, the additional income can be helpful.
- Down Payment Assistance
Every day hundreds of home owners participate in bond, gift, and grant programs to receive down payment assistance from nonprofit organizations for a mortgage loan.
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