Can you come up the 20% down payment necessary to build a home? Most consumers cannot. If you are one of the many people that want to build, but can not come up with the down payment, you have options. Many consumers are struggling with the ability to come up with the down payments required by banks since the recession. Most banks require the typical 20% down for a construction loan. That is a lot of money to come up with on a $200.000.00 home. There are alternatives available. If an individual owns a parcel of land that they want to build on, they can use the equity in the land as the down payment, and if there is 20% equity, that individual would not have to come up with any down payment. There are banks that let you wrap the closing costs into the loan under the right circumstances. There is also PHFA (Pennsylvania Housing Finance Authority) financing that is available through select banks. PHFA financing allows you to acquire a construction loan with very little down payment, although there are income restrictions. The interest rate for PHFA financing is at an all time low of 4.6%. We would be happy to assist you in finding the best lender to meet your individual needs.