To clear up another common myth: A down payment doesn’t have to be all your own money.
You have several options to fund a down payment on a house, including personal savings, grants from nonprofit agencies or public institutions, state down payment assistance programs, employer assistance, or gifts from family, such as wedding gifts. If you’re planning to sell your home and buy a new one, you may have enough equity accrued to cover some or all of your new home’s down payment.
Before you accept a financial gift, make sure you talk with your Loan Officer and understand the guidelines for receiving gifted funds. Nearly 30 percent of recent homebuyers used gifted funds for a down payment. Your Loan Officer can explain which sources of funds you may be eligible to use based on your loan type, as well as local programs for down payment assistance (DPA). You can read more about this here.