With all the credit tightening going on, many programs will require that buyers come up with at least some small downpayment. Even if you are able to secure 100% financing, you will still need to pay closing costs (if the seller does not agree to pay for you). So, here are some ideas that may help you get the money you need.
- Have a garage sale. You’ll be surprised how much money you can raise this way, especially if you’re willing to give up some of the junk you’ve been hoarding for years!
- Raid your savings. Even if you’ve been trying to keep a little stashed away, this is important! If your kids have a savings account, ask them if you could borrow from theirs as well!
- Borrow from your retirement fund. Many retirement funds (401k, IRA, etc.) have provisions for you to borrow from them for important reasons. This counts as an important reason! Check with your plan administrator or your financial advisor about this option! The nice part about this is that as you repay your loan, you pay the interest to yourself!
- Ask your family. This is probably the hardest thing for some to do, but you might be surprised at how willing a family member would be to help you buy a house, even if they’ve said "no" to you before when you tried to borrow for other things! If you do this, you’ll need a form for your banker stating that this is a gift and not a loan. (Yes, you can still repay your family member. It just can’t be a formal loan!)
- Sell something. If you look around your house, you might find items that have pretty good value, but that you haven’t used in a long time. An old coin collection; an old musical instrument that no one plays anymore; an extra freezer you don’t really need; a second (or third) car you could do without. Often, the cash from selling these items can add up quickly!
- Win the lottery. Hey, somebody’s got to win! Might as well be you!
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