By far, the biggest hurdle to becoming a property owner is saving up for the down payment. However, that obstacle need not be insurmountable. As a matter of fact there are ample down payment grants and programs available to help first time purchasers (although most adults don’t know about them).
In addition to the above programs, there are also other creative ways to come up with the money for a down payment.
Realty Today reports:
Lean on your city
What were then known as zero-down loan, federal homebuyer tax credit, and tax credit funds have now gone local.
Local government, primarily cities and counties, now largely operates these programs. The rules for qualifying vary from buyers with low or moderate incomes, and some prioritize helping first-time homebuyers.
Get by with a little help from your friends and family
There are mortgage programs that let you use “gift money” as a portion of your down payment. However, as lovely as it may sound, it’s almost expected to end up having relationship issues for taking gift money from a relative.
Ask your employer
First responders like police and firefighters can be offered assistance for down payment by universities and municipal departments that employ them. If you are a top-level recruit, employers, big or small, would likely offer you a relocation assistance program.
Tighten your budget
Instead of spending $20 a workday for oatmeal and coffee for breakfast and takeout lunch, consider bringing lunch from home and save $400 per month or $5000 a year. Now that’s some down payment saving!
Borrow from yourself
One way you can borrow cash from yourself is through your 401(k) or IRA. There are retirement accounts that can help you with your down payment for a home by letting you borrow or pull out funds, penalty free.
>> read the full article at realtytoday.com