As outlined in our section titled Types of Loans, you may be able to qualify for loans at 97% or even 100% of the purchase price of the property you buy. Even if you qualify for these loans, however, you’ll need some cash to finalize your home purchase. If you don’t currently have the cash in hand in your bank account, here are some thoughts on where you may be able to obtain the cash you need to purchase a home. We list a few options below, but please don’t even consider pursuing any of these options without reviewing them first with a knowledgeable loan officer. The rules that govern the mortgage lending industry are very restrictive with respect to where the buyer obtains the cash required for a real estate purchase. If you have the money, but haven’t followed the rules, you won’t get the loan.

Having said that, it is probably worth noting here that most mortgage loan programs require a review of only 2-3 months of bank statements in determining where you came up with the cash to purchase your home. Whatever the ultimate source of the cash, your lender will probably be oblivious to it if you’ve had the cash in your bank account for more than 3 months.

Some suggested sources of cash for your home purchase:

Gifts from Family Members

Selling Other Assets

Write Yourself a Check Against Your Credit Card

IRA, 401(k) or other Retirement Funds

Assistance Programs