Here are several things that you can use to your advantage when wanting to gather the "downpayment" for your home purchase.
First - First Time Buyers have to come in with the same down-payment amounts as everyone else. (there are some "snake oil" sales people that would have you think differently)
The prevalent types of loans that are available in the world are:
- Conventional - Usually needing a 20% down payment.
- FHA - 3.5% down payment.
- VA - Some associated costs - but the least money required in the form of a down-payment.
- Gifts - These work well and usually come from the first time buyers family to give them their start in life.
- Credit Cards - We have seen this type of "down-payment" gathering - but not very often - with interest rates quite high in the realm of Credit Card Companies - it is not the best choice.
- Saving - With preparing for home purchase - most people can sock away a bit of savings each month. If the "down-payment" amounts don't change( increase ), this will serve you will after several months - you will have the amount needed.
- Tax Returns - this one is key, sock it away as if you were not expecting it and after a couple of years - you will be good to go.
- Escrow - The Buyers part of Escrow (usually 1% of the purchase price)
- Title Insurance - The Buyers part of Title Insurance (usually 1% of the purchase price)
- Lenders Fee - (seller does not have this cost associated with their sale as part of their closing costs) - However, you as a buyer are not paying a real estate agent's commission either. The Real Estate commission for the Sellers Agent and the Buyers Agent (those representing you) are always picked up by the Seller.