Coming up with a down payment can be a sticking point for aspiring homebuyers — even when the other pieces are in place. Below are some options to consider.

• Loan Programs: Many loan programs only require a 3% down payment, much lower than 20%, which is often cited as a rule of thumb. 
• Down Payment Assistance (DPA): Check out this helpful overview of DPA programs in Dane County. 
• Seller Credit: A credit from the seller cannot directly cover your down payment, but it can free up funds for your down payment. 
• Your Home’s Equity: If you own a home, you can borrow against your home’s equity to purchase your new property, then quickly pay it off when you sell.

A mortgage is a big financial responsibility, and ideally one that can weather changing life circumstances. We recommend that you consult your financial advisor, loved ones, MCDH agent, and lender throughout the process.