Down Payment Options: Real Estate

It’s always good to know your options. I take applications for mortgages seven days a week and I usually ask people three questions:

  1. Have you decided how much you want to spend on your monthly payment?
  2. How much money do you have saved for your down-payment?
  3. Will this be your first real-estate purchase?

(quick note: a first-time home-buyer is defined as someone who has not owned a home in the past three years)

Most of the time, people know how much they want to spend per month but don’t have much saved. If this is you, here are your options:

  1. Just wait: Take some time to cut out more expenses and save more. The good news is that real-estate isn’t going anywhere and you can start buying when you are ready.
  2. Gift funds: When you are buying a property with the intention to occupy it as your primary residence, you can use gift funds. The money used for your down payment can be gifted by a family member. They will have to sign a gift letter and wire the money to the title company. If they have already given you a check or made a transfer, a complete paper-trail will be required before you can proceed to close your transaction.
  3. 401K: If you have one, you can withdraw from it for your down-payment and closing costs. See your investment banker or employer for documentation they will require for the withdrawal.
  4. Down-payment assistance: These programs are available to first-time home-buyers. You would be surprised at the amount of options that exist today. Most states and counties have programs that will provide up to $40,000 for the down-payment and closing costs. To find out if you qualify for any of these programs, please contact me:

The best way to learn what it takes to own a home for the first time or again after financial hardship is to just apply! If you don’t qualify yet, you will walk away with a plan of action and great support.

My purpose is service.

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