Tips for Finding Down Payment Cash
Gifts. Who doesn’t love gifts?! Often, a relative can give you a gift of the down payment. It must be a true gift not a loan and a “gift letter” from the relative is required.
Be sure to ask family members if any relatives have money put away for you in savings bonds, CDs, etc.
Borrow from your 401k. You have to pay it back, but you’re paying yourself back so you don’t lose anything! See IRS info on 401k programs and ask your tax advisor about 401k down payment restrictions.
IRA funds. You may be allowed to take out $10,000 per buyer, or $20,000 if you’re married, as a down payment on a home. You must not have owned a home for two years. Consult your CPA.
Your Mortgage Advisor is your best resource for questions about what funds are allowed, so call them to make a plan.
Sell an asset. Sell something of value like a car, boat, stocks, etc. Can you get by with one car instead of two for a while and sell the more expensive car if it lets you get into your own home?
Grants. Most grants are for low income buyers and are administered locally. Click the “Local Info” tab on this Lesson and go to your State or City to find out about grant & assistance programs.
Check the fine print: grant program rules can be so restrictive that you may not want to accept the money.
Employer. Some employers offer grants to employees, though with strings attached. Ask your employer if they offer any grants or loan programs.
Thinking of buying a home in the Portland, Oregon area? Checkout our First Time Home Buying Classes!Finding Down Payment Cash,
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