Every month you have enough money to make a mortgage payment, so you know you could afford a house.  The only problem is that you haven't been able to save up enough for a down payment.  Well, it's time for a little creative thinking about how you can get the cash you need for a down payment on your first home.  Here are a few ideas. 

1. Ask Mom and Dad to give you the money.

2. Ask Mom and Dad for a loan.

3. Sell your toys.  Do you have an RV, a motorcycle, skidoos or a second or third car or truck?  Sell everything on wheels, except the one you need for transportation.  While that old car depreciates, real estate always appreciates over the long term.

4. Go in with friends to buy a house together.  Pool your money.

5. Ask your grandparents to borrow on their life insurance policy.

6. Start saving money.

7. Borrow from your retirement account.  If you have an IRA or a 401K you may be able to borrow against it at a low rate of interest.

8. Have a yard sale.  Get rid of anything that will bring you money.  After all, you don't want to have to move all that junk when you move into your new home.

9. Get more money from work.  Ask for a raise.  Work more overtime.  Get a second job.

10. Cut out any unnecessary expenses.  If you get a daily cup of gourmet coffee on the way to work that costs $3, and you work 240 days a year, you can save $720 a year.  Other ideas to cut back include brown bagging your lunch instead of going out to lunch, stopping smoking, etc.

Do you have any more, other, better ideas about how a first time buyer can come up with a down payment?   

Bob Willis
Prudential California Realty
16218 E. Whittier Blvd.
Whittier, CA   90603
Phone:  (562) 639-9400
bob@willisrealtor.com

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