Skip to main content

First-Time Homebuyer Down Payment Strategies

house model next to stacks of coins

Saving for a Down Payment

Ready to unlock the door to your first home? Buying a home is an exciting step towards financial growth. There are flexible down payment options available. Doing your research and consulting with a licensed loan officer are important steps to take as you begin your path toward homeownership.

Affordable Down Payment Options

State & Local Assistance

  • Government, foundations, non-profits, and employers may offer down payment assistance.
  • Often zero-interest forgivable loans.
  • This may include lower mortgage rates or tax breaks.
  • Income and home price limits may apply.

Explore Your Options

  • Research programs in your area.
  • Speak with a licensed loan officer.
  • Consider low down payment mortgages.

money with house keys

Boosting Your Down Payment

Family Gifts

Retirement Savings

  • 401(k): Withdrawals allowed but taxed + 10% penalty. Loans may be available.
  • Traditional IRA: Up to $10,000 can be withdrawn for a first home (taxed, no penalty).
  • Roth IRA: Tax-free withdrawals for first home after 5 years.

It's always a good idea to consult with a tax or accounting professional before moving forward. Visit our step-by-step guide to homeownership and get started on your journey.