Where to Get the Down Payment
If you save money, which many of you do, it won't be hard for you to find a down payment.
But there are also a lot of us who haven't been able to save as much as we'd like for a variety of reasons. With this problem, we will need to find a way to make a down payment.
If you have excellent credit, which means your credit history is spotless, you can probably get a mortgage with 100 percent financing if you want to.
A lot of lenders offer this product, and if you can make it work, you won't need any cash for a down payment and will only be responsible for closing costs.
If you can't get a loan for the whole amount, here are some ways you might be able to come up with a down payment.
Retirement Plans
If your employer has a retirement plan, like a 401k, you could borrow from it to help pay for your down payment. Most 401k plans have this option so that people can buy a home. You have to pay this money back, though, every month.
The bad thing about a 401k plan is that when you pay back a loan, you do so with money that has already been taxed.
Even so, it is still something worth looking into, and a lot of people think about it.
Family
If nothing else works, ask a family member to help you out. This is a common thing for newlyweds to do, since they often ask their parents for help with the down payment.
I understand if this isn't for you. It can be hard to put pride aside and ask family members for help.
Save
If you're at the end of your rope and don't see any money for a down payment in the near future. You might just have to bite the bullet, start putting money away, and wait it out.
Your tax return is a great way to get your savings going. Depending on how much you get back and how much of a down payment the lender wants, your tax return could get you in the door sooner than you think.
