Big Home Down Payment? Here Are Some Things You Can Do!

Having money for a down payment is important when buying a home. It’s one of the few upfront costs you need to prepare for. If you’re concerned that you don’t have enough money for a down payment yet, don’t worry; we will help you get that money in the bag in no time. 

Explore Loan Options with No 20% Down Payment

Most loan products today require at least a 20% down payment, and that’s a lot of money. There’s really no surprise why many people struggle to meet this requirement. The good news? Other mortgage options don’t require this specific down payment. 

For example, an FHA mortgage can get you a home with only a 3.5% down payment. Another thing is, if you qualify for a VA loan, you don’t need to worry about a down payment anymore. 

Finally, down payments for jumbo payments may be lower than you think, as there are some that can get you a loan with only 5% to 10% down payment. 

Work on Your Credit Score and Debt-to-Income (DTI) Ratio

It pays off to apply for a loan with a good credit score because this will help you get better rates. In fact, it can even lower your down payment. Having a high credit score and low DTI ratio, they can help reduce your interest rates as well. So, work on these two as early as now!

Explore the Pros and Cons of a Lower Down Payment

Don’t immediately sign over the dotted line when you find a loan product that can let you pay for a lower down payment. Explore the pros and cons! Usually, a lower down payment entails higher interest rates down the road. Ask yourself if this is something you can work on in the future. 

You also need to think about mortgage insurance that is required if you get an FHA loan. The insurance requirement will be there until you refinance to a different type of loan. 

With that, it’s worth really sitting down and exploring your options. Think things through before you make a decision. 

Save Up as Much as You Can

Before you take out a mortgage, it’s crucial you save up as much as you can. Start as early as now—trust us; this will pay off in the end. 

Reach Out to Down Payment Assistance Programs

Yes, there are programs that can help you pay for your down payment. You can reach out to them, and they can help you pay for your down payment. However, the terms will vary based on the company or program you apply to. A down payment assistance program is ideal for those who need to get a house of their own as soon as possible. 


Buying a home is one of the biggest investments you can ever make in this lifetime; therefore, it requires a lot of preparation. The down payment is one of the biggest upfront expenses you need to think about, which is why you need to prepare yourself for it. Fortunately, there are many down payment options you can explore to help you own a home today. 

Hawkins Home Loans can help you with home loans in Sacramento, CA. We are your online resource for a stress-free process with our low rates and outstanding services. Schedule an appointment with us today.