Every word of the film, for reading instead of watching.
Three and a half percent of a four hundred thousand dollar house is fourteen thousand dollars. For most people, that number isn't the hard part. Having it sitting in a bank account is. So here's the part that matters.
Almost none of it has to be your money. The entire down payment can be a gift. All of it. And the list of people who can give it is wider than most people assume.
A family member. Your employer. Your labor union. A close friend, as long as there's a clearly defined and documented relationship.
A charitable organization. Or a government program, if it's set up to help first time buyers, or low and moderate income families. There's also a version where no money moves at all. If a family member sells you their house for less than it's worth, that difference can be the gift.
It's called a gift of equity, and it counts. Now the other pocket. The seller. Interested parties, meaning the seller, the agent, the builder, can contribute up to six percent of the sales price.
And what that six percent is allowed to cover is specific. Your closing costs. Your prepaid items. Discount points.
A rate buydown, permanent or temporary. And the upfront mortgage insurance premium itself. But be clear about the line, because it's a real one. That six percent cannot touch your down payment.
The three and a half percent has to come from you, or from one of those gift sources, and the seller is not on that list. Closing costs, yes. Down payment, no. And every dollar has to be traceable.
A gift needs a letter with the donor's name, their relationship to you, the amount, and a statement that no repayment is required. Plus the donor's bank statement, showing the money leave their account and land in yours. Cash on hand doesn't work. Not theirs, not yours.
If it can't be documented, it can't be used. So put it together. The down payment can come from someone else entirely. The seller can cover six percent of the price toward everything around it.
The question was never only whether you've saved fourteen thousand dollars.