If you already have money saved up in a checking account, savings account, or a money market account, you have an advantage to getting a loan. These funds are considered liquid funds because you have immediate access to them to put on your down payment. A bank or lender will see that you have the money and that you are stable enough with your finances to pay back on the loan.



Stocks, mutual funds, and bonds are also great ways to finance a down payment for a mortgage loan. When selling these things, however, make sure that you keep all of the documents that are proof of sale. Your lender may want to see these.

If a member of your family provides you with the money to make a down payment for your mortgage loan, you will have to fill out a gift letter, which is a statement that points out you are related to the person who gave you the funds. The gift letter may also include the amount of funds gifted as well as where the person who gave you the funds got the money from. You and the family member will have to sign the gift letter documentation.

You may also get money for a mortgage loan down payment from your retirement funds, if you have any. These funds are commonly known as 401k funds. Remember, though, that if you borrow from your 401k funds for a down payment, your lender may consider them to be additional debt that you owe. This may have an effect on how much of a loan that you qualify for. If you decide to cash out your 401k funds to avoid this situation, you will most likely be hit with large tax penalties. So, before you decide to use your 401k funds for a down payment, be sure that you realize everything that is at stake.

Another way to finance a down payment for your mortgage is to sell some of your personal property. For example, you can sell your car or an expensive piece of jewelry to get the funds that you need. The only thing you must be aware of in this situation is that you must keep detailed receipts of everything to prove that you once owned these items. It may be best to have the buyers of your possessions pay with checks instead of cash. This will help keep the records that your lender may ask for.

Asking your employer for assistance for a down payment is also an option that may be available to you - depending on your employer's policies. And, as usual, you must have a detailed paperwork trail for this, so that your lender can see exactly what is going on.