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Can I really borrow funds towards my down payment?


Finding money for down payments can be a challenge, and piggy banks are only so large. When you work with M&T Bank for your home loan, we'll need to know where the funds for your down payment come from, even if it means you got a little help.

Here are a couple of reasons why you might decide to borrow money toward down payments: Expected money gets delayed but your mortgage loan process is already underway. You could stop it until you get the money, but that often means doing a lot of the paperwork again. Instead, it's easier to get a quick secured down payment loan to put you over the top.

Another reason could be that you get a deal with an amazingly low interest rate. Mortgage rates are some of the lowest out there, but small loans sometimes offer very good rates, as well.

If you decided to get a down payment loan to help you through the process, that’s OK. It’s perfectly acceptable to do this – just make sure you include information about this loan in the Liabilities section of your mortgage loan application.