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- low down payment
If you don't have much cash on hand, there are other ways to obtain a down payment aside from your personal savings. Many first-time homeowners combine money from multiple sources, including:
- Gifts — Money given by family members is a significant part of many down payments. If you plan to use a gift, however, be sure to get a letter from the source of the money clearly explaining that it is a gift and not a loan.
- Retirement plans — If you participate in a retirement plan at work, you may be able to borrow from your account. Also, if you have an IRA, recent tax laws may also allow you to withdraw up to $10,000 from your account penalty-free. Be sure to read the requirements carefully and to consult a tax advisor before borrowing or making a withdrawal. Potential taxes and penalties can be costly.
- Home equity loan — You may be able to get a home equity loan on existing property to use for the down payment on the purchase of another property.
- Low-down-payment loans — Chase has a range of these loans available, which can be particularly useful for first-time buyers. 1
Your Chase loan officer can help you evaluate which down payment strategies may work best for you.
1. For down payments less than 20% mortgage insurance (MI) is required and MI charges apply.
