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We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

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Where can I get money for a down payment on a home mortgage?


It depends on your situation. If you don't have cash for a down payment, there are several options available.

  • Put off buying the home and start saving until you have enough money for a down payment.
  • Get help from parents or other people you trust. Gifts can be used as down payments, as long as you can present a signed statement saying the money is a gift and not a third-party loan and can prove the source of money.
  • You may be able to withdraw up to $10,000 from a traditional, SIMPLE, or Roth individual retirement account (IRA) without penalty. Generally, if you're under 59 and a half years old, you would have to pay a 10 percent tax penalty on early withdrawals. However, if the money is used to buy, build, or rebuild a first home, the penalty may be waived. Roth IRAs work differently than other IRAs. Consult a trusted tax or financial advisor before making any withdrawal to see if this makes the most financial sense for you.
  • In some cases, you can borrow money to make a down payment. However, you should carefully consider that option since borrowing your down payment would increase your overall debt and your monthly payments.
  • Sometimes local non-profit or government organizations can offer you a second mortgage on special terms to replace a down payment. For eligible servicemembers or family members, VA loans do not require a down payment.

Warning: Think twice before using retirement savings on your down payment. The biggest benefit of saving in an IRA is the tax-free growth of investment earnings. If you remove the principal to fund your down payment, you’ll have less money in the retirement account to grow tax-free. Your savings will not grow as quickly. 

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The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.