Creative Ways to Come up With Down Payment
To Buy Your New Home
Many first time homebuyers are faced with the challenge of coming up with the downpayment to purchase their first home.
You know you will eventually want to purchase a home so start young. Parents set your children up with a custodian account in school and teach them about saving from an early age. The importance of choosing. My youngest had an account from the age of 7. The bank would come in to his school at lunch time and take deposits from the kids. So, he was able to choose between using his pocket money to buy that toy or save it for later. But, not everyone had this benefit. So, where to start from here?
Depending on your income and where you want to buy your new home, you may be able to get down payment assistance through a governing body. Be sure to seek out a Realtor and lender who understand these programs when you are starting the process.
You can borrow from your IRA. You, your spouse, parents or grandparents can borrow up to $10,000 from an IRA to put towards a home.
You can receive a gift. The amount a family member can gift you depends on the loan type and you will need supporting documentation from the family member that is loaning you the funds. Your lender will tell you what forms you need.
You could Co-Buy a home with a family member or friend. The challenge with this is how do you take title to your new home and will require coordination between your lender and title company or attorney.
You could seek out a Rent to own situation. If you are purchasing a home built after 1978 there are some companies that will help you purchase that home you want and work with Realtors, like me. There are other rent to own options as well.
A really creative option you may consider, for birthdays or if you are getting married. Ask guests to put funds into an account for the purchase of your home. A money tree at parties for these events is also a good option.
Considering these options you will soon be a homeowner!! Let's talk today and plan for your future.