How to Borrow Money From Friends and Family For Your Down Payment When Buying Your First Home

There are few things which are more uncomfortable than asking for money from a family member or friend.
However, it is much easier when you are prepared with the relevant information such as:

How much you need to borrow - Try to be as specific and accurate as possible because it's very difficult to go back and ask for more money.
The specific interest rate you will be paying back - As a general rule of thumb, the higher the interest rate you are paying back the better it is viewed.
Your repayment schedule - This would be your time table to pay the money back.
The amount of money you are contributing to the down payment - If you are putting in ten thousand dollars of your own money it might make the other party more comfortable knowing you have skin in the game.
Information about how strong your financial ability is to repay the loan - This could be the length of time at a job, your two most recent paystubs and last years W2s.
What type of financial security you offer your lender - Talk about the fact that you have disability insurance or unemployment insurance which covers the amount of your monthly payment in case an emergency comes up and jeopardizes your income.
The monetary benefits to the lender - Do not assume that the other party realizes how much of a return they will get for loaning you the money.
Discuss how much they'll make over the life of the loan to you.