When you are buying...

3 crucial elements

Typically, conventional lenders will require a 20% down payment, although you may be able to find loans with down payments of as little as 5% (perhaps less in some cases). With down payments less than 20%, you likely will have to pay private mortgage insurance, which guarantees the lender will be repaid in case of default.

Mortgage insured by the Federal Housing Administration (FHA) and those available to U.S. veterans often require very low down payments. Ask your lender if you can qualify for one of these loans.

If you are having trouble coming up with the down payment, here are some tips to ease the burden:

• Start early. Begin saving for a down payment as soon as possible. After a few years, it adds up.
• Ask for a Flex 97 mortgage. Underwritten by Fannie Mae, it only requires 3 % down, provided you have good credit. And, you may be able to borrow that 3% on credit cards.
• Convert stocks. Consider selling stock for the down payment. The housing market often is a better investment anyway.
• Sell an asset. If you have "toys" such as a boat, extra car, or other asset, consider selling it for the down payment.
• Borrow from relatives. Today lenders will allow yk with your lender for restrictions

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