If you think a 12% annual return on your money is good, here's the first time insider secret on HOW TO set your sights on 23% from your mortgage.

Potential home buyers who can make a house payment with no difficulty sometimes can’t buy a house because they don’t have the funds required for a downpayment and closing costs. One solution to the problem–use a downpayment gift assistance program, sometimes called a downpayment grant program.

Waiting until you have a sizable down payment can save you thousands every year and provides a cushion a new homeowner might need.

“Some couples can afford the house when they’re both working, but if a kid comes along and one wants to stop working, then they have a problem,” says Michael Eisenberg, a CPA and personal financial specialist in West Los Angeles, Calif. Even in his area, where starter homes cost a lot more than $350,000, he recommends that young couples “sit back, stay renting and save your money for your down payment.” If your rent is reasonable and the housing market in your area has slowed, there’s even less reason to rush into buying.

“In the early years, you aren’t building any equity with the mortgage payment,” Eisenberg says. “If the market changes or your personal circumstances change and you’re forced to sell, you could lose money” if you made little or no down payment. The equity in your home can also give you an extra source of cash in an emergency.

Sellers are not allowed to give home buyers downpayment funds. That’s where gift assistance programs step in, providing a “work around” of those laws. 20% is required to avoid paying monthly PMI (monthly mortgage insurance) but I have recently obtained financing for my clients on conventional loans with as little as 5% down. It really depends on your credit score. If your FICO score is less that 700 you can expect to be required to put down 20%. How much do I need for down payment for a conventional mortgage loan. Your insight into what would be the best way to proceed would be much appreciated.  A little advice would go a long way right now. I am very grateful for your help.

Downpayment gift or grant assistance programs help home buyers close on a home by providing funds for downpayment and closing costs. Find out how they work and how you can take advantage of a gift assistance program.

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