It is a frustrating time for renters who want to buy homes but haven't saved much for a down payment. Mortgage rates are on the rise, houses aren't getting cheaper, and it seems like time is running out. 'It would take me at least another year or two to save another $10,000 to $15,000, and frankly, I want to purchase a house before the costs are out of reach', e-mails a reader from Long Island, where the median house price rose 20% last year. There are many ways to leap the down payment hurdle. Some strategies are for people who have some money saved up somewhere; others are for people who are practically broke. It has been a long time since homebuyers were required to come up with 20% down. Lenders often underwrite mortgages with 3-5% down. The question becomes: How do you come up with that 3-5%? You could tap your retirement savings, either borrowing from a 401(k) account or withdrawing money early from an IRA account. When you borrow from your 401(k), you repay the loan over five or more years. Most 401(k) plans will let you borrow up to $50,000 of your balance or 50%, whichever is less. Withdrawing money from an IRA can be a good strategy for first-time homebuyers. You pay taxes on the disbursement, but a 10% early withdrawal penalty is waived if you use the money to buy your first home. Some advisers warn against removing money from a retirement nest egg. 'But,' says Ellen Bitton, president of Park Avenue Mortgage in New York City, 'in the long run, you'll probably have more appreciation on the money invested in real estate.' People with virtually no savings have options, too Some loan programs allow borrowers to use gift money to make the down payments. Generally, the gifts have to come from family members, spouses, or domestic partners or nonprofit agencies formed specifically for this purpose. Entire industries of nonprofit organizations have sprung up to fill this need. Most of the time, the home's seller 'donates' 3% of the home's sale price to the nonprofit, plus a fee.