September 23, 2022
Ways to get your DOWN PAYMENT when purchasing a home
by Rosemary DeLaurentis
Article written by Rosemary DeLaurentis
Day 2 of 7 – of my home buyer’s series and how I have helped so many buyers in the Valley.
Let’s talk about thinking OUTSIDE THE BOX for obtaining your down payment for your first home (or for a 2nd or 3rd home), or getting help with your closing costs, etc.
Here are a few ideas for getting your down payment:
#1 – DOWN PAYMENT ASSISTANCE PROGRAMS. Programs offered by lenders supported by city, or county programs to help with down payment and closing costs. Usually 3%-5% of purchase price available. Each program is different depending on loan scenario and borrower qualifications. Some are specific to first time home buyers but others are not. Some programs have an income cap.
#2 – BORROWING FROM YOUR 401K. Money borrowed from 401K or similar retirement account. Borrower is paying himself back over time as a fixed rate loan. It is usually easy to find the guidelines from the employer on their website.
#3 GIFT FUNDS from a relative or significant other. Easy to document and use.
#4 HELOC loan borrowed against an existing home. If buyer owns a home he can use these funds for a down payment on his next home. Depending on the HELOC this loan can be paid off in a certain timeframe once the first home is sold.
There are so many options to obtaining needed funds. My lenders have some wonderful solutions. These items were shared by one of my awesome lenders, Lynn Gallett with Guaranteed Rate Affinity. If you would like her information, please reach out to me so we can get you moving forward with your next purchase!!
IDEA FOR GETTING CLOSING COST ASSISTANCE: Now that the market is changing and homes aren’t FLYING off the market in a day or so, sellers are considering closing cost assistance. Hurray!!! My last few accepted contracts have had sellers paying closing costs. That is a true VICTORY for the buyers now.
Don’t wait another day. Let’s get you into a home. It is obtainable and I am here to help you make it happen!