Yes, funds received through a divorce settlement, such as your share of the equity from selling the marital home or other asset distributions, can generally be used toward a down payment. Some buyers may also qualify for first-time programs if they have not owned a primary residence in the past three years. Lenders will typically want to see documentation of where the funds came from, so keep your settlement agreement and any related financial records easily accessible. The Consumer Financial Protection Bureau recommends talking with a lender early, since that is often the first step in the buying process after divorce.