Strategies for a Down Payment!

by slucero


We are all too familiar with the challenges that come when saving for a down payment. If you have little to no equity in your home or a first-time homebuyer, you’ll need to collect as many dollars as possible to help bring down your monthly payment and secure a solid loan.


We are here to give you some additional ideas on how to save for that down payment that you might not yet have thought about. Many traditional lenders prefer ar 20% down payment, but there are some options for low-down-payments. Keep reading to see if one of these options could work for you. 




VA Loans – These loans are 0% down loans backed by the Department of Veteran Affairs. 


USDA Loans – Are also 0% down payment loans but secured by the Department of Agriculture. 


FHA Loans  – These are 3.5% down payment loans held by the Federal Housing Administration. 



The state of Colorado also has its own set of down payment assistance programs. There are also grants you can look into to help you get moving on a home purchase. Some of these have strict requirements in credit scores and financial records. Others are a little more relaxed and forgiving. We suggest you work with your Rocky Mountain Realty professional to get the loan best suited for you. 



First-time homebuyers often seek down payment support from friends and family. In fact, the National Association of Realtors says that 28% of buyers 28 and younger used gifts of money from friends and family in 2019. Those ages 29-38, 21% of them used some form of assistance like this as well. 

Work with your realtor when it comes to collecting this sort of assistance. You want to do it the right way, so it doesn’t send a red flag to a potential lender.



New home fund support is coming via way of platforms beyond Sites like and help you organize a down payment fund for friends and family who would like to help you. If you want to give back in response to that support you could even try Patreon and get creative with content and document your journey and include your contributors on the journey. Let them make a few choices like paint colors or help you pick out a new fridge. These are great platforms for newlyweds, in lieu of gifts. There are qualifications involved, so be sure to read the fine print. 


There are also some retirement, 401k, and IRA draws that you could look into with the help of your financial advisor. These are less popular for those who might be older and need to save those resources for their golden years. However, if you’re still looking at decades of career building, these options might be on the table. As always, work with a realtor and financial planner to help you make this sort of decision. 


If you have any questions about down payment structures and resources in Pueblo, Colorado, Rocky Mountain would be happy to help. 


Published on 2020-10-02 08:09:47