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Most typical Americans have 5 to 10 credit cards, charge those cards to the maximum each year, and spend the money as fast as it is made. You want to buy a home, and feel the mortgage monthly payment is no problem, but cannot squeeze enough cash for a down payment and closing cost.

You probably have more options than you think. Most homebuyers have probably saved some money, but, not enough to buy their dream home. You may have overlooked some sources of funds, here are some strategies you might want to pursue:

Gifts: Your parents, relatives or friends can present you with an outright gift of a down payment. If this is a possibility, lenders will ask for a gift letter from your benefactors stating that the money is yours and that no repayment is expected. Check with your accountant about the maximum of the non taxable maximum yearly gift you can get from your parents.

Employment benefits: You may also like to check if you can withdraw or borrow from your Pension Plan, IRA or 401K. There might be a penalty for withdrawing funds from those sources, so a better strategy may be to borrow against your account. Check with your accountant please.

Negotiate: Another important source is the Seller of the property you are planning to purchase. Your agent can request a 3% to 6% credit (depending on the amount of your down payment) from the Seller at closing to go toward your closing cost. This is allowed and regulated by lenders and a great way to get funds for closing cost. Remember, reducing your need for cash has the same effect as increasing your cash.

Try to strike deals when possible, be creative. Lender's fees may be negotiable, for example, discounts may be available from escrow or title. If you do not try, you will never find out.

Advances: You may be able to raise cash by arranging to receive your holiday bonus or allowance ahead of time. Similarly, if your job calls for a regular merit or pay raise, ask your employer for a letter detailing the amounts and dates of scheduled increases. Some lenders go so far as to consider such non cash forms of compensation or commission as the use of a company car as part of your total income.

Life Insurance: Some insurance policies have an accrued cash value. You can either cancel the policy and receive its built-up worth, or you can leave the policy in place and borrow against it.

Sell, sell and Sell more: Take a real hard look at your personal properties, sports car, boat, motor cycle or any other material assets. You might have enough cash value which can be very helpful to you; will be wonderful if you eliminate a long term monthly debt in the process. Just consider a yard sale to get rid of some of the odds and ends you have accumulated over the years.

The type of loan you select can be tailored to fit the amount of cash and down payment you have. For example, if you select the 100% finance, you need to be sure you have enough cash for closing cost and pro-rations (taxes, maintenance fees, assessments etc). When you select the 100% finance, you should have very good credit score to satisfy your lender.

If you have VA eligibility (Widows or widowers of veterans also qualify for VA loans), you can also get 100% finance with a maximum that is determined according to the guidelines by the Veteran Administration. For Hawaii, it is currently $625,500 maximum loan amount. The FHA loans require lower down payment, in addition, conventional loans allows mortgages with 5% down payment or more. When you have less than 20% down payment with the conventional loan, there is a mortgage insurance payment added to your monthly principal and interest.

It is never late to start planning and writing your long terms strategy; how much you will save every month, how you will reduce your credit card balances and working on checking & improving your credit card scores. Operate from a position of good faith, and use wise strategies. Your next move will then be to your new home.