Traditional mortgages usually require at least 10 percent down in order to qualify. Even if you’re staying on the lower end of your housing budget, coming up with this amount of cash can be difficult. On top of the down payment, there are also the closing costs to budget for, which can make homeownership almost seem impossible. But before you give up on your dreams of owning a home, try some of the following tips, which can help you get money for your down payment:
Put a savings plan into action
It’s never too soon to begin saving for your down payment, if you haven’t been saving already. If you have been saving and find that you’re nowhere your goal amount, reevaluate your budget and make sure you’re doing everything you can to save the most amount of money possible every month. Eliminate other debts and use the money that would go towards credit card and other loan payments towards your house savings. Cut down or cancel services you don’t really use and could do without. Even some minor changes around your home can help you to save money—less energy usage can lower your monthly electric bills, and coupon clipping can help you cut down on grocery costs. Set a monthly savings goal that’s attainable, and put that plan into action.
Find out if you qualify for assistance
There are several different programs that are designed to help people get the money they need for their down payment. For example, you may be eligible for a VA home loan or FHA mortgage loan, which would lower (or eliminate) the down payment requirement. If you don’t qualify for a special type of mortgage loan, you may still be eligible for financial assistance through other types of programs, such as state programs.
Tap into retirement savings
Whether you simply have money saved for retirement, or you’ve invested in an IRA or 401(k), explore your options for withdrawing some money early. Withdrawing funds from a retirement account can be a good way to get the money you need for your down payment, but you’ll want to carefully weigh the pros and cons first (for example, there may be penalties involved).
Take on a second job
Even when you’re doing everything you can to save as much as possible, it can still be difficult to reach the amount you need if money is tight. If your schedule allows it, consider taking on a second job, even if just part-time. Alternatively, you may want to find out if you can put in extra hours at your current job. Even just a few extra work hours each month will help you to make money you wouldn’t have had otherwise, and you can put all those extra earnings into your down payment savings.
Contact Peachtree Financial Solutions
If you’re receiving payments from a long-term annuity or structured settlement, you may already have the money you need for your down payment. It can take a while to save those periodic payments, however, before you have the amount of cash you need. Why wait for your money to arrive in smaller payments when you don’t have to? Instead of receiving those long-term payments, access some or all of your money now by selling your future payments to Peachtree Financial Solutions. We can offer you a lump sum of cash by purchasing your payment stream. And depending on the value of your payments, how many payments you have remaining, and the amount of money you need for your down payment, you may only need to sell a portion of your payments. This can allow you to get just the amount of money you need to buy your home, while keeping the remainder of your payment stream intact. To learn more about selling future payments for a lump sum of cash, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.