Most mortgage programs require a down payment, however small or large.
Theoretically, this is money you put toward the home price out of your own pocket. But you can find ways to make a required down payment without emptying your savings.
One way is to find a down payment assistance program in your area.
Down payment assistance programs — usually run by local governments — offer up grants or low-interest loans to help first time home buyers make their required down payments.
You can also use gift funds for a down payment on a mortgage.
To use a cash gift for a down payment, however, you’ll have to prove the money came from an “acceptable source.”
That means providing a paper trail showing the gift funds leaving the giver’s account, and being deposited into your account or into escrow.
You’ll also need a “gift letter ” from the giver, indicating his or her relationship to you, the amount of the cash gift, and a statement that the giver does not require repayment. There is no limit to the amount of money that can be gifted to a home buyer.