Part of the American dream is owning a home, it sounds easier than done. The first thing that a home buyer must consider is the downpayment. Back before the market tanked, there were financing programs and creative ways to get the downpayment covered. Today, that cannot happen. Having a downpayment is a requirement. Typical downpayments are usually 3.5% - 5% but there are cases where a buyer has to have a higher downpayment. There are ways to get the downpayment if you do not have it.
Ways to Get A Dowpayment
Get a gift from your parents, grandparents, or relatives - When you opt to have it this way you need to clarify the terms, whether it is a loan or a gift. If it is a loan make sure that the repayment schedule and terms are clear.
Sell large ticket items that are not a necessity - A second car, boat, motorcycle, collectibles, assets.
Set up an automatic savings plan - Saving up automatically will help you start on saving, may it be a big or small amount all you need is to start it.
Ask the government - The government has ways for you to save more for your down payment . There are different federal down payment assistance programs. In Georgia they have a variety of programs for each county. The Georgia Dream is the most common. If you are a military veteran they have a VA loan. There is no downpayment or mortgage insurance.
Cash in stock, bonds, other investment, savings
Take a loan from your 401K - It will be a loan, including interest, that you pay back to your 401K.
Withdraw it from your 401K - You will have to pay the taxes and penalties
Use your tax refund
Use your yearly bonus
Find private money - not from a bank
These are some great ways to get a downpayment. In order to decide which options are best for you. Talk to your mortgage broker and accountant. Why an accountant? If you decided to withdraw funds from a 401K, use a tax refund, or yearly bonus. It is always good to know the tax ramifications.
If you have any questions about using one of these ways to get a downpayment or need help in buying or selling real estate, give me a call. I am glad to help.
