How To Get a Down Payment for a Home

Do you want to buy a Glendale Ca home but lack the 20% down payment? Read on for some ideas on some down payment resources ideas!

The Glendale CA market is difficult for first-time buyers. Prices and interest rates are rising, the lack of available homes for sale leads to competitive bidding on the lower priced homes and it is not unusual to compete against all-cash investors and foreign buyers.

Difficult, but not impossible. We placed about a dozen first-time buyers into homes in 2017 and we are eager to help even more in 2018.

How much money do you need for a down payment?

While we are in this strong seller’s market (the sellers have more control) you need to look at things in terms of what the seller wants.  And, besides a high sales price, the seller wants as little risk and inconvenience as possible. That is why 20% is considered “standard” and safe. Anything lower is considered a higher risk and anything higher is considered a lower risk for the seller.

It is possible to get a loan with as little as 3.5% down payment- you just can’t expect to use that sort of loan to buy the home that every other buyer wants to buy.

Down Payment Resources

Savings –  It seems impossible to save enough money for a down payment, right? We are talking $100,000 to $150,000 for a starter home in Glendale, CA. However, many people see the big number, assume it’s impossible and wind up saving nothing.

I encourage you to review the compound effect where small savings, here and there, start out as nothing but eventually start adding up to big money. I would also encourage you to look, carefully, at your spending habits. How much could you save if you didn’t get that frappuccino or decided to walk a few blocks instead of valet parking?

401k Plan – You can borrow money from yourself! Contact your human resources department to find out how much is available and details on how it works.

Bank of Mom and Dad – I know you don’t want to ask, but I encourage you to consider it. Your parents might have money in super conservative money market funds or savings account, earning next to no interest. If you are uncomfortable about asking for a straight up gift, consider asking for a loan. While this is not a formal, recorded obligation, your relative could see this as a better use of their money.

This only really works with close relatives as the banks will require a letter stating the money is a gift. Any arrangement you might have to pay the money back is strictly between relatives.

Investors – Investors are not always a faceless bank. Alek and Alex purchased a home together with Alexs’ parents, who viewed the purchase as an investment and a second home. They worked out a detailed agreement regarding investment dollars, monthly obligations, any fixes and improvements as well as a detailed exit plan. I have seen friends buy together, even groups of siblings. This idea is called equity sharing.

An incredibly important part of any equity share is a detailed agreement on the exit plan. It is important to know, upfront, how the parties will decide on timing and property value of any sale. One such plan that I helped put together stated that the parties would get an appraisal from a particular appraiser 5 years from the purchase date. All parties had the right to execute a buyout plan at that time or all parties could agree to sell. – It is not just an urban myth! is a company that compiles all of the various programs, grants, and agencies available to help home buyers buy a home. Their website matches your characteristics with program guidelines, spitting out a complete list of resources suitable for you!

It is important to remember that these programs may not help in a strong seller’s market.

Is 2018 your year for buying a home?! Request the DIGGS Homebuyer’s Kit and get started before all the other buyers wake up from winter!

HomeBuyer's Kit

Fill out the form below and we'll send a kit to help you search for a home (better than Redfin or Zillow), find a down payment and find a loan. We won't share your info with anyone, that would not be cool.



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