Many of you must have to arrange down payments to buy a home, and a below we will find out the ways so that you can arrange the down payments to purchase a house.
Home ownership is increasing in America; in the last century, it was about 25%, which grows up to 65% until the end of the century.
In those days many new home buyers struggled to arrange a down payment for the home, and some of the banks required at least 50% of the down payment. Today the down payment has been lowered to up to 20%, and some of the FHA loans require only 3.5% of the down payment.
Save From Your Tax Refund
In case it is hard to keep, you can always change your withholding exemption from 1 to 0. It will encourage or force your employer to pay more to the I.R.S. and can reduce that amount from your paycheck.
And for the individuals who are not disciplined with their finances or tend to spend so much, this method will help them to have a good income tax refund. And you will be surprised to know a regular income tax return can help you enough to make the down payment for the home.
Borrow From Parents
You should always ask your parents to have some money for the down payments, and this is not unusual also. There are also some tax laws which are favorable to the parents, as they can give you the money in the form of gifts without having tax consequences.
And in case your parents are not ready to give you the money, you can ask them to have it in the form of an unsecured loan. You can always pay back that money with better interest as compare to banks or any other lending institutions.
There are always the chances that the rate you will pay to your parents will be less than most of the lending institutions and you will be in a win-win situation.
Make a Habit of Regular Deposits
It is always advisable to make a regular habit of putting some equal amount every month in your saving account.
Soon you will realize that your savings are increasing and the amount will be handsome enough to make the down payments for your house. Regular monthly saving is a great habit even if you can utilize those savings in many other things.
Arrange for a Garage Sale or Sell Some Items On eBay
Everyone has the stuff which is no longer useful to them, and some of them spend lots of dollars every year just to increase the storage space.
If you look at yourself, you will find there are so many stuff which you have not used since one year, and you can sell those stuff by arranging a garage sale, or you can use eBay or even Craig's List to sell them.
It will help you out to get rid of the stuff which is not needed and can also have some handsome money within the week so that you can arrange money which can help you to make the down payment on the house.
Request Seller to Arrange It for You
You may not know that if you are buying the home at the asking price of a seller, the seller can help you out in many ways. Some of the sellers can arrange a down payment for you upon your request or can pay the closing cost for you.
You can always find out this with your lender before asking for any help from the seller, as some of the lenders have strict guidelines about how much you can receive.
There can be many programs available, which use to allow up to some percentages of credit from the seller, these programs can vary from city to city, and you can get more information about these programs from your real estate agent.
Check For The Governments Programs
You should always check out for the programs run by the Government as if you have served the country in armed forces you can qualify for the Veterans Administration Loan which is also called VA Loan.
There are also many programs available which help the first time home buyers to have assistance to arrange the down payments. You can also check with your county so that you can check if they are offering any programs to induce home ownership.
Opt For The Second Job Or Ask For A Raise
Some of the individuals choose to work part-time as a second job in the evening. And in case these are short-term jobs, you can always afford to do one. There can be much seasonal work or other part-time jobs which you can do.
You can also ask your company or immediate boss to have some raise in your salary. You can always convince them of the work you have done for them in the past and how the company has made money.
You can always present them with the list of your accomplishments. You should just ask them, and maybe you will get more than what you have wished.
Check out Your Retirement Funds
There are some retirement accounts which can let you borrow some money from them to buy a home. You should always look at your CPA to know the current regulations. Some of the retirement accounts will also let you take out principal amount without any penalty.
Opt For 100% Finance
You can always ask for the 100% funding if you have a good credit which is dependent on your community offers for the first-time home buyers.
It can be your single mortgage which can be insured by your mortgage insurance, or you can also qualify for the silent second mortgage due when you sell. You should always inquire about this from your mortgage broker to understand which program can be beneficial to you.
Get A Job With Better Payment
You can always opt for a better paying job as long as you are changing your field of employment.
You should also evaluate that changing your job should not affect your mortgage application. So, you can look for the various jobs available to have the better payment. You can start your hunt by enquiring local employment office; you can also check out your networks and start sending your resume to the companies where you would like to work.