I wanted to share these fantastic ideas from Charity Shehtanian, a mortgage broker in Livermore, CA. Affording the down payment on a home can be easier than you think!
Via
Charity Shehtanian (First Priority Financial):
Many renters may have the income to qualify for the payment on a home, but the tough issue is coming up with the money for the down payment. And with the $8000 First Time Home Buyer Tax Credit deadline only a few months away, you may be looking for ways to save money faster. Here are a few great suggestion to help you save that down payment faster.
1. Find out how much you can borrow from your 401K for a home purchase.
2. Ask family members if they can gift you money for a down payment. While the full lump sum might be difficult for a single family member, maybe several members can spare a couple of hundreds dollars to help out.
3. Ask your employer if they have a program to assist with a down payment on a home.
4. Check your paystub and find out how much you are paying each pay period in Federal and State income taxes. If you are paying several hundred dollars per pay period in Federal and State income taxes, why not revise your W4 withholdings as on January 1, 2010 and lower those taxes to almost zero. Take that additional money and save it for your down payment. Once the money is saved and the home purchased, you can revise your W4 again and start paying Federal and State income taxes again.
I have a client that is short a couple of thousand dollars for his down payment. This client is paid weekly and is paying over $300 per pay period in Federal and State Taxes. In less than 2 months, he will have the balance of his down payment saved.
What's the benefit to him? He will be purchasing a home in the best real estate market in years, i.e. for a much lower price. He will have tax deductions for his home interest and property taxes, and he will qualify for the $8000 tax credit.
Livermore Mortgage Broker
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Thanks for some good points!