9 Creative Ways To Get Your Down Payment

Thank you for reading my blog, in this issue I want to give you some ideas to get your down payment money if you're thinking of buying a home. In this the market we are in today a buyer needs to have a down payment. While prices are low the less you have to put towards your down payment, but once prices begin to peak the more money you have to come up with.

Remember, nothing this good lasts for long, so seize the opportunity and begin getting your funds in order. Here are some ideas for generating funds for your down payment:


1. A Gift From Parents or Family Members - If you're like me the last thing you may want to do is ask a family member. But if you have someone you can ask in your family that is kind and willing to support you to get your home, then you may have to suck it up and ASK!


2. Increasing Your Paycheck - Use your tax money now! Go to your payroll department and ask for a W4 form so you can claim more dependents. Make sure you check with an accountant so don't go over your tax amount so you don't owe when you file for taxes.


3. Tax Refund - If you already plan to shop til you drop with your refund check, don't. Most buyers I know save their tax refunds and have large down payments or add to what they already have.


2. Borrowing from a 401(k). If you work for a company that offers a 401(k) plan, it's in your best interest to fund it to the maximum allowed for your income. Not only will you be able to tap into the power of compounding (and have your money work harder for you), but you'll be able to more quickly build a sizeable nest egg for your retirement. When it comes to borrowing from a 401(k) plan, not every company allows it. Check with your plan administrator to see if your company will allow you to borrow, if there are limitations on what you can do with the cash, and what the interest rate will be on the money you borrow. You should also be aware that you'll typically need to repay this cash within 5 years. But if you should leave the company, or be fired, you'll need to repay the cash within 60 days, or it will be considered a withdrawal (and you'll owe federal income taxes on that money along with a 10 percent penalty, if you're under the age of 59 1/2).


3. Withdrawing up to $10,000 from an IRA - If you have an individual retirement account (IRA), the IRS allows you to withdraw up to $10,000 for the purchase of a first home. (For those of you who have purchased a home before but haven't owned a home in the last 3 years, you're considered to be a "first-time buyer" for this specific purpose and can make a withdrawal). When you withdraw cash at any time from a tax-deductible, tax-deferred IRA, you'll owe federal income taxes on the amount you're withdrawing at your current marginal tax rate. However, if you're withdrawing for the purchase of a first house, you will not owe the 10 percent under-age penalty if you're less than 59 1/2 years old.


5. First Time Home Buyers Program - Depending on your qualifications there are first time home buyers programs being offered in your city and through lenders. These programs will help you with your down payment or closing costs.


6. Second Job or Hobby - If you have some additional hours on your hands try taking on a second part time job. If you have skills cooking, baking, sewing, baby sitting, tutoring in a certain subject, type papers for college students or doing resumes then you may consider taking on these tasks to put some extra cash in your pocket.


7. Sell Items You Don't Need - Take a look around and see if you have clothes, furniture, jewelry, electronics, antiques, etc. Once you have found items that you no longer need plan a yard sale. If you're thinking I don't have a yard, then set up your apartment like a store and have friends and family invite people they know to shop some deals. Oh yeah, to get people to take money out of their wallet make sure you serve food and drinks to keep them happy and spending.


8. Downsize - If you have to much space and you can downsize to a cheaper apartment, then do so to save money. Also, if you are currently renting and have a spare bedroom, you can have a family or friend stay with you to share the rent. Another way is, if you're parents or a family member has extra space then ask you if can stay until you save more and buy a home so you can save on paying a full month's rent.


9. Sell Your Car - If you have a car or more than one car, you should think about selling one or all in order to obtain instant funds to use towards your investment. Remember, a car only loses value over time, while real estate increases in value over time.


*I found a great source that is excellent for helping you know what to be aware of during your home buying process called, the Home Buying Defense guide. This ebook that you can download right now covers everything you need to know to protect yourself and your finances and to help you make smarter buying decisions. Click here to check it out now!


**Did this article help you? If You Used Any Of The Ways Above Or Came Up With Another Way To Come Up With Your Down Payment Please Share It.**


AUTHOR: Written By: Rhonda Holt -I'm a top producing sales agent in Brooklyn,NY
Read more about me and see my homes for sale? Visit: www.RhondaHolt.com
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