Planning for your down payment
Plan for your down payment
Your down payment is an important step in the homebuying process.
Here are a few tips to help you understand what a down payment is and how it affects your mortgage.
Down payments 101
Your down payment goes toward the purchase price of your new home and is paid at closing. There are several down payment options available.
- Putting 20% down has its benefits, like potentially lower payments and no Private Mortgage Insurance (PMI) requirement, but low down payment programs can make it easier to buy a home.
- We offer several low downpayment options, including:
- Chase DreamMaker Mortgage℠ – pay as little as 3% down
- Federal Housing Administration (FHA) loan – down payments as low as 3.5%
- Standard Agency Loans – put down as little as 5%
- U.S. Department of Veterans Affairs (VA) Loans – zero down payment option available
Build your savingsSide 1 of 2
Build your savings, Side 2 of 2
Many buyers tap into savings for a down payment. To grow your savings, consider setting up automatic transfers from your checking account. It might surprise you how quickly small transfers can add up.
Downsize your lifestyleSide 1 of 2
Downsize your lifestyle, Side 2 of 2
Downsizing can help you save money for your down payment. Creating a monthly budget and tracking your spending can help you reduce expenses and potentially watch your balance grow.
The sale of your existing homeSide 1 of 2
Down payment assistance programsSide 1 of 2
Borrow from your 401(k) or IRASide 1 of 2
Borrow from your 401(k) or IRA, Side 2 of 2
You can withdraw from your retirement accounts to fund your down payment, but you may be subject to taxes and penalties. Consult a tax advisor for more information.
Financial gifts from relativesSide 1 of 2
Financial gifts from relatives, Side 2 of 2
A relative can give you and your spouse up to $14,000 each tax-free towards your down payment, but there may be restrictions based on loan amount and type. Consult a tax advisor to learn more.