@Home Realty Network Realty

Even if you don't have 20 percent of the down payment there are still lots of options, especially if you are a first-time buyer. So don't give up on your home-owning dreams just yet.

Look into first-time home buyer programs.
In recent years, HUD has began allowing for non-profit organizations to assist first-time homebuyers with their down payments. There are some limitations to income, but if you meet their criteria, these can be fantastic opportunities – and not hard to get. Some of the most popular are:

Investigate different government-assisted loan programs
If you're a veteran, you may qualify for a Veteran' s Administration guaranteed loan and that means you won't have to worry about a down payment at all. Or, if you're in the armed forces reserve, you might qualify for a no down payment loan under the FHA/Vet Loan program Utah residents can also qualify for the Utah Housing Loan Program 1-800-521-6950 or the Rural Housing Loan Program

You might also qualify for an FHA loan . While this plan does not completely eliminate the down payment, it offer a low down plus will finance your closing costs and therefore reduce your up-front expenses.

Try For Seller Financing (carry back)
If you can only afford to put 5 percent down on a house, but your lender won't qualify you for the loan unless you have 10 percent down, it’s possible for the seller to personally finance the 5 percent difference.

You and the seller will agree on a contract specifying the loan term and the amount of the payments. For example, if the house's price is $120,000, and the seller agrees to help you with 5 percent of the down payment, that's $6,000. You could agree to pay off the $6,000 in two years, with $250 payments due every month. You, the buyer, would then put $250 each month into an escrow account which would then transfer the payments to the seller.

Some sellers also like the idea of seller carry back because if they don't need all of the money from the house immediately, they can end up making a little extra in interest.

Save for the down payment.
Start saving the pennies in between your couch cushions and then save some more. Promise yourself that every month you'll save X-amount of dollars to go towards your down payment. Then, keep your promise.

Sell some of your assets
Don't sell your kids or any of your vital organs to raise money for a house, but do consider selling the boat or other valuable possessions. Of course, it will hurt to part with the boat, but you can buy another one later. (Your kids and your kidneys on are not as dispensable.)

Ask for help from your parents or other close relatives
All those years of making your bed and doing the dinner dishes will pay grand dividends if your parents can afford, and are willing, to help you with the down payment. Try asking them. Many parents are excited to have their children invest in a home and if they have the means to help, they probably will (even if you never made your bed). Most lenders will allow a gift of down payment from a blood relative.