Friday, September 9, 2011

How Can I Get a Down Payment to Buy a Home?
According to Homes Magazine home ownership in America has increased from 25% in the early 1900’s to 69% by 2005.  The major struggle for home ownership has been coming up with the down payment.
Here are a few ideas that may work for today’s want–to-be homeowner.
Save Your Tax Refund
If it’s hard for you to save, you can change your withholding exemptions from 1 to zero.  This will more than likely assure you a fat income tax refund.  If this does not increase your tax refund than your regular tax refund might be enough to help you buy a home.
Borrow From Parents
It’s not unusual for parents to help their children buy a home.  Tax laws will allow each parent to gift a certain amount of money without tax consequences.  Before you decide to use this method I suggest you contact a CPA (Certified Public Account) for more information.
Save X Amount Periodically
My mother taught me that the secret to making a savings account grow is to make deposits into the account at the same time every month and to never withdraw the money unless it is an extreme emergency.  For example, the first Thursday of every month you deposit $200, at the end of 12 months, you will have saved $2400 plus interest. As the balance grows you will be surprised at how disciplined to the saving process you have become. 
Sell Stuff
Everybody has too much stuff.  Some people spend hundreds and even thousands every year on storage units where this stuff is stashed.  Look in your attic, your basement, under your bed and in your closets you will surely find stuff you no longer use.  If you haven’t used it in a year, sell it at a garage sell or on eBay.  You will be surprised how much money you had lying around.
 Check Out Government Programs
If you’ve served in the armed forces, you may qualify for a VA Loan from the Veterans Administration.  The government also offers a slew of down payment assistance programs for home buyers.
Take a Second Job
Some buyers sacrifice evenings to work a part-time second job.  Look at it as a short-term situation, and it might not be so hard to do.
 Ask for a Raise
If you are a dedicated employee that is a benefit to your company then ask you have nothing to lose and a down payment to gain.
 Tap Your Retirement Funds
Certain retirement accounts will allow you to take out the principal balance without paying a penalty.  Before considering this method consult your CPA for current regulations.
Consider 100% Financing
If you have good credit, you may qualify for a 100% loan.  This could be a single mortgage or a combination of mortgages to equal 100%.  Talk to your mortgage lender to receive more information about 100% financing.
Above are only a few of the many ways to obtain a down payment to buy your dream home.  By being creative and hard working, home ownership may be closer than you think.
The above information makes no guarantees and is the personnel opinion of Deborah Burton of Deborah Burton Realty, LLC.