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How do you get funds for a down payment on a home?

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Ways to gather funds for a down payment on a home include borrowing from a retirement fund, receiving assistance from state-funded programs and laddering certificates of deposits, according to Bankrate. Requesting monetary gifts from family and friends is another option.

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Borrowing from an IRA or 401(k) are good ways to come up with the down payment on a home, notes Bankrate. Using an IRA comes with stipulations, such as having to be a first-time home owner and not using more than $10,000, which can be combined into $20,000 for married couples seeking to buy their first home. A person who borrows money from his 401(k) instead of his IRA has to pay the borrowed money back. One advantage of using funds from a 401(k) is that the interest paid for tapping the account early goes back into the account.

Special programs are available to aid individuals in need of a down payment for a home, according to Bankrate. Government-sponsored offices, such as Freddie Mae and Freddie Mac, are commonly used for down payment aid.

The interest normally paid on credit card balances can be used to go towards the down payment on a home, notes Bankrate. It's best that individuals first pay off cards that have the highest interest rates.

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