7Ways to Accumulate a Down Payment
One of the biggest problems facing buyers today is coming up with enough money for the down payment and closing costs. The amount of money you have available can greatly limit or increase your purchasing power. Rather than saving it all yourself there are options that may help. Here are some ways to accumulate the necessary funds that are neccessary.
1) Have the money given to you as a gift
Documentation will be required to prove that the money is actually a gift and not a loan. Any tax-payer is permitted to give up to $10,000 per year to another person without having to pay a gift tax. Technically, your mother could give you $10,000 and give $10,000 to your spouse. Your father could do the same. This would give you $40,000 for a down payment and closing costs. (Note: unless you are putting down at least 20% or are obtaining government-insured loan 5% of the sales price must be your own money)
2) Borrow against your 401K or insurance policy
You can also cash out your 401k but you will be subject to withdraw penalties and payment of taxes. If you borrow against it, the loan payment will be counted as a debt.
3) Sell or borrow against an asset
Sell an asset such as a car help increase the amount of money you have available. Borrowing against an asset is also acceptable as long as you hold equity with the additional debt. 
4) Obtain a low point or zero point loan.
This will reduce the amount of your closing costs substantially. In some instances, the lender can also pay all or a part of your non-recurring costs.
5) Ask the Seller to pay for part of your non-recurring closing costs.
Your Real Estate professional can assist you when you make an offer on a home.
6) Ask the seller to carry back financing
If the seller does not need all of the equity in their property, they may be willing to carry some of the financing which will reduce the amount of your down payment.
7) Consider the different loan programs.
Your loan officer can help you in determining the best loan program to suit your needs. There are a wide variety of programs that require lower down payments and assist you with closing costs. There are also city and county payments assistance programs you can check into.
Start saving for a down payment as soon as you decide home ownership is a financial goal.