One of the early steps of the home buying process is to secure the funds needed for your down payment. This is especially true if you want to acquire a home in an expensive market.
There are a large variety of lending institutions you can choose from nowadays, so it is possible for you to find an institution that is willing to lend you the money you need for your down payment. However, there are other factors you need to keep in mind when deciding if you want to borrow the funds you need to cover your down payment. For example, say you are planning to borrow the 5% you need on a line of credit. You will not only need to ensure you have enough money every month to cover your mortgage payments, you will also need to ensure you have enough money to make payments on your loan as well.
However, if you are able to establish your financial credentials to your lender, and they know you will be able to make your monthly mortgage and loan payments, some institutions will accept borrowed money as a down payment for the home you wish to purchase.
If you have any questions regarding using borrowed money for a down payment, or any other questions about the mortgage application process, you should discuss them with your mortgage broker.