Top 3 Creative Ways Wisconsin Buyers Are Coming Up with Down Payments in 2025
In today's competitive housing market, saving for a down payment can feel like a mountain to climb - but Wisconsin buyers are getting creative. Whether you're a first-time buyer or upgrading, here are three smart ways people are covering their down payments in 2025.
1. Gift Funds from Family (with a Paper Trail)
Many buyers are turning to gift funds from family - especially parents or grandparents - to cover part or all of their down payment. Mortgage guidelines allow this as long as:
- It's truly a gift (not a loan)
- The donor signs a gift letter
- There's a clear transfer trail (bank to bank)
📘 Learn more: Fannie Mae gift fund rules
2. Borrowing from a 401(k) or Retirement Account
In 2025, more employers allow 401(k) loans to be used for down payments. This is especially popular among buyers in their 30s and 40s. The pros:
- No credit check
- You pay yourself back (plus interest)
- Can be a temporary cash bridge for your closing
⚠️ Be careful not to withdraw funds permanently unless you've reviewed tax consequences.
Read more: 401(k) Loan for Down Payment
3. Using Seller Concessions Strategically
Instead of asking sellers to reduce the home price, many buyers negotiate seller concessions - money that goes toward closing costs. That frees up your saved cash to be applied toward the down payment itself.
This works especially well when:
- You’re buying a home that's been on the market a while
- You're working with a savvy agent and loan officer
Learn how this works with Freddie Mac's guide to seller contributions
Want to Know What's Possible for You?
We can review your current savings, income, and loan options - and find out exactly what you can afford (and how to structure it wisely).
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