9 Ways to Get Money for a Down Payment on a House

Effortless Ways To Earn Money

Do you want to learn how to get money for a down payment on a house? See our list of 9 ways you can get money to buy a house.

Whether you’re purchasing a new home, building a new construction home, or planning to fix up an older home, you’re probably excited about the prospect of closing on the home and moving in.

Not so fast. Buying a home is one of the biggest investments that most families make. Like Generation X and the Baby Boomers, the Millennial generation has dreams of becoming homeowners, saying goodbye to rental payments and hello to space that they truly can call their own.

While many Millennials may feel finding the perfect house is the biggest part of buying a first home, there are other, maybe less fun, parts of the process that need to be considered. Before beginning the process of buying a home it’s essential to fully understand the different aspects regarding the home down payment.

What is a Home Down Payment?

A home down payment simply is part of the money the buyer gives to the home seller. Usually this money comes directly from the buyer, while the remainder of the purchase price owed to the seller comes from the mortgage. When buying a home, the down payment amount is expressed as a percentage. For example, a 10 percent down payment on a $350,000 home would be $35,000 from the buyer.

Want Free Money?

  • Aspiration: Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

According to Bankrate, the down payment is lost if the buyer can’t make the house payments (mortgage payments) and the property ends up in foreclosure. Bankrate states, “This gives you an incentive to make your mortgage payments. That’s why the lender requires a down payment.”

Down Payments and Mortgage Insurance

On average, when a homebuyer makes a down payment that’s less than 20 percent, the buyer must purchase mortgage insurance. Mortgage insurance is designed to protect the lender, not the buyer. It’s designed to reduce the risk for the lender when making a loan, allowing a first-time buyer with less than perfect credit to secure a mortgage.

Millennials may qualify for PMI or private mortgage insurance, which features premiums that must be paid monthly or an option of an upfront premium that’s paid when the loan begins. FHA insurance is mortgage insurance paid to the federal government. This type has an upfront premium payment plus monthly payments.

Mortgage insurance is money that must be budgeted alongside your monthly mortgage payments to the lender.

Tips and Tricks to Save for Your Down Payment

1. Consider Loan Down Payment Programs

CNBC reports that while 80 percent of Millennials want to purchase a home, “very few are in a good position to buy, largely because they have nothing saved.”

For Millennials who haven’t been able to save a 20 or even 10 percent home down payment due to student loans, lower income jobs, and other factors, there may be an option of a loan down payment program. Some Millennials may qualify for down payment assistance programs through both local and state agencies, and look to see if they might qualify for an FHA loan. In addition, the National Homebuyers Fund (NHF) offers multi-state Down Payment Assistance (DPA) programs with non-repayable grants. According to the NHF this type of down payment assistance can make home ownership possible and offers the following:

  • Down payment and/or closing cost assistance grant, up to 5 percent of the loan amount
  • DPA doesn’t have to be repaid
  • Available with affordable interest rates and variety of grant level

2. How Median Home Prices Have an Effect

Often when first-time Millennial homebuyers begin thinking about buying a house, they underestimate just how pricey the real estate market has become, especially in certain areas of the country. Real estate professionals continually see a gap between expectation and reality with this generation of buyers. For Millennials considering a real estate purchase, it’s essential to learn the median home prices of the area. If the median home price is $430,000, then a 20 percent down payment would be $86,000.

It’s possible for Millennials to find a great home and to stay on budget, especially if there’s a full understanding of all the elements including the factors about the down payment.

3. Look Into State-Specific Down Payment Assistance and Resources

When you are looking for ways to get a down payment for a house, don’t forget to check your state and local government resources. Often times, they offer down payment financing and non-financial assistance resources available to you. In my state of VHDA’s Down Payment Assistance (DPA) grant can provide eligible first-time homebuyers with funds needed for their down payment. This program is funded through the net earnings of VHDA and is part of its commitment to strengthening homeownership opportunities for Virginians. You can search for your “state + down payment assistance” into Google to find resources that apply to you.

4. Set Aside a Portion of Your Tax Refund

Have you received your tax refund this year? While some people advocate you use it to reward yourself for your hard work, you can use the full amount for your down payment. While it may not enough if you sock it in a savings account (and don’t spend it) and continue to spend less and works towards getting money for your home down payment.

best free tax software

5. Set Aside a Portion of Your Performance Bonus

Got a raise at work or got a Christman bonus? Instead of spending it on entertainment then save a portion or all it into your down payment fund. If you don’t make a plan to save the money you know is coming in, it can be easy to actually misuse those funds. Your goal should be working towards building a down payment fund and every dollar counts.

6. Make Recurring Savings Deposits

Some money saving apps like Qapital can help you make recurring savings deposits on a schedule like weekly, monthly, or quarterly. This can be really helpful since you don’t have to lift a finger, just download the app and set your goal of having a down payment amount and it’ll help you reach your savings goal. You can learn more about Qapital in our full review.

7. Withdraw from Your IRA Without Penalty

Did you know that you can withdraw from your retirement accounts and use the funds for a down payment on a house? This is true if you are a first-time homebuyer, and borrow up to $10,000 from a traditional or Roth IRA.

You need to keep in mind that this isn’t free money, you’re going to pay taxes on the money you withdraw. If you and your significant other both have IRAs, you both take up to $10,000, totaling $20,000 for your down payment.

8. Earn Extra Income on the Side

Join the other 44 million other people who reported having a side hustle in 2019 to make extra money. As the gig economy develops, so do gig economy jobs and opportunities to earn money fast to help you get money for your down payment fund.

The only thing you need to know is where to look.

This guide can help you make money fast and free through actionable methods that are proven and are legitimate.

9. Use a Budgeting App to Stay on Track

Managing personal finances is a painstaking task, but that doesn’t mean you shouldn’t pay attention to budgeting. Managing your money is the best thing you can do for yourself in today’s unpredictable economy and stay on top of saving for your down payment. And, there are several online budget tools that can help you achieve your goal.

The Bottom Line

These ways to get money toward a down payment for a house can help you and your family work towards getting the home of your dreams. If you think you still need some tips on how to save money, check out 55 ways to live cheap


Want Free Money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

Learn more

The Best Apps to Save You Real Money

We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?

AppAt a glancedownload
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
Open a new account in the next 24 hours and you could get up to $200 in reward stocks.
Truebill reviewTruebill
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.

About the author


  1. Saving for a down payment on a home is tough for millennials since they are burdened with crippling student loan debt. Their are first time home buying programs for millennials though, so you could check with your respective state programs… some don’t even require a down payment!


Please enter your comment!
Please enter your name here

On a similar note...

Explore More On

Offers Expiring Soon


This Company Will Give You $150 for Opening a Free Account - Boost your savings and earn up to 1.00% APY interest on your savings. Get up to 10% cash back on your purchases. Get $150 bonus when you spend your first $1,000 with your new Aspiration Plus Card.

Get Your Paycheck Early - Set up direct deposit to automatically get your paycheck up to two days early every time you get paid.
personal capital★★★★★

Get Up $200 in Free Stock for Joining - Commission-free stock, ETF and options trades. Get a free stock worth up to $200 when joining (must complete application). Simple, easy to use investor platform with no account minimums.
personal capital★★★★★

The Smart and Free Way to Manage Your Money - Take control of your finances with the perfect union of technology and highly personalized service. Get access to free online financial tools, including retirement planner, investment checkup, net worth calculator and more. Digital-first wealth management advisor with 24,000 clients in 50 states.
personal capital★★★★★

The First and Only Interest Earning Crypto Account - Receive up to $250 Bitcoin bonus when you make qualifying deposits over the first 30 days. Receive up to 8.6% annually on your crypto. Join the most trusted financial services for crypto investors on the market.

401K and IRA Management - Start your free 401k and IRA management now. Find and reduce hidden fees. Improve your diversification.

Enjoy the Benefits of a CIT Bank Money Market Account - A CIT Bank Money Market Account helps you get more from your savings with interest rates for maximum growth. Earn over 7x the national average with high-interest rates. It now pays to open a money market account with CIT Bank.
My Millennial Guide