What are the best sources of cash for a down payment?

If your own bank account isn't large enough, you have several options. For example:

• Receive a tax-free gift from your parents (or others) documented by a "Gift letter" stating no repayment is required (thus your debt burden in not increased). Some lenders may require you to use some of your own money in addition to the gift.
• Borrow against a life insurance policy.
• Borrow against a company pension plan.
• Cash in a retirement savings plan (even thought you may have to pay a penalty for early withdrawal).
• Ask for a cash payment from your employer instead of next year's raise.
• Obtain an advance on a future inheritance.
• Use your own business as collateral.

Team up with friends, relatives or investors as partners in return for equity in your home. (You can, if you like, buy them out later.)

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