The most common issue for a first time buyer usually seems to be…"How do I get the money needed for down payment on a home purchase":
- Get A Gift – With FHA, the buyer can get a give from a relative for the down payment and closing costs.
- Down Payment Bridal Wedding Registry – Gives a couple an opportunity to received wedding “gifts” through a dedicated bank account to collect down payment funds for a new home
- 401K Loan – You can borrow the money from yourself, in most cases this loan will not count against your qualifying debt to income rations and as a first time home buyer the most 401K programs will allow for this transaction,
- Life Insurance – If you have whole life policy you can either borrow against it or cash it in.
- Secured Loan - If you have an asset that is free and clear such as a vehicle you may be able to get a secured loan against the value of the asset.
- DPA – Several government entities offer down payment assistance programs for first tie home buyers
- Sale of Personal Property - With verification of value and bill of sale, the funds form the sale of personal property can be used for the down payment.
- Human Resources – Some employers offer down payment assistance as a benefit to the employees. These awards are eligible for down payment through FHA financing.
- Tax Refund – A buyer can use this years tax refund to become a homeowner. A copy of this years tax return and a copy of the refund check or bank statement showing the amount of the refund on the deposit is all that is required.
- Second Job – Even though we may not be able to use this income to qualify the borrow if the borrower has not had the job for 2 years, the cash earned from the second nob can be used for the down payment.
- Savings/Budgeting – Cutting back on extras along with anyone of the abve mentioned ideas will get you into a home faster.
There are some many reason why now is the best time to purchase your first home. Please contact me to find out more.
