What Can You Do If You Don’t Have Enough Down Payment?

For many buyers, one of the biggest obstacles to buying property is the lack of a down payment. In Hungary, banks usually require at least 20% down payment in addition to the mortgage. Without sufficient savings, buying a home may seem impossible. Fortunately, there are several ways to overcome this challenge.

1. Use state subsidies

In some cases, the state helps supplement the down payment:

CSOK (Family Housing Allowance): Grants worth millions of forints, depending on the number of children.

„Babaváró” loan: An interest-free loan that can also count as down payment.

Local government programs: Some municipalities offer support for young couples or first-time buyers.

2. Help from family or friends

It is common for family or friends to cover the missing down payment:

As a gift: officially accepted by banks if properly documented.

As a loan: a written agreement is recommended to avoid future disputes.

3. Build higher savings

If buying is not urgent, it may be better to increase savings:

Home savings account (if available again),

Regular monthly savings on bank accounts,

Investments (e.g., government bonds) to build up equity over time.

4. Choose a more affordable property

If the chosen property is too expensive, a smaller or cheaper home may be a viable alternative. This lowers both the loan amount and the required down payment, providing a good market entry point.

5. Other creative solutions

Involving a co-buyer: such as a partner or business associate.

Mobilizing existing assets: selling land, property, or valuables.

Increase verifiable income: officially reporting higher income improves loan eligibility.

6. Conclusion

A lack of down payment is a serious hurdle, but not insurmountable. Through state subsidies, family support, disciplined savings, and creative solutions, the required amount can often be achieved. The key is to ensure the purchase remains safe and sustainable in the long term, not the result of a rushed decision.