9 Ways To Come Up With A Down Payment For Your New Home
So you’ve been on HAR looking for the perfect house and there it is, the one you love. There is just one thing standing between you and your dream house.. that dreaded down payment.
Don’t let your dream flush down the drain just yet. Here are 9 ways to come up with the down payment for your new home.
Throw Your Money Into Ladder CDs
If you already have a little money put aside, put it into a Certificate of Deposit. CDs are low-risk and relatively accessible. You can maximize your earnings with a CD by opening different certificates at vaping maturity dates. Rather than buying one big CD, spread your money into three-month, six-month, and one year certificates. Known as laddering, this gives you more flexibility to adjust your savings as rates change. This process keeps you from being stuck for too long with low earnings.
Pay Off Credit Cards
When you carry your credit card balance, that accumulating interest charges mean that more of your money goes to the credit card company every single month. Keep that cash for yourself by cutting your debt load.
Prioritize your debts and pay the most on the one with the highest interest rate. Once that one is paid off then shift your focus to the next highest interest rate. Doing this will free up more of your income.
Receive a Gift!
Are you your parents favorite child? Take advantage of your favored family status and ask them to provide you with a gift of your down payment. Tax law allows gifts of several thousand dollars a year to be bestowed without tax consequences.
Tap into your IRA
Tax laws allow us to use up to $10,000 in IRA funds as a down payment if you’ve never owned a house – without paying the 10% penalty. As an added bonus, if you’ve had the Roth IRA for at least five years, the withdrawn earnings are tax-free; if it’s less than five years old, the earnings are taxable
Ask for a Raise
Another option is to turn to your boss and ask for a raise. Be sure to do your homework and base your raise request on your accomplishments rather than your needs.
Sell Unwanted Items
You likely have some used furniture or old clothes laying around that you are no longer in need of. Sell these items to make a few extra bucks to use towards your down payment. Use websites like Facebook Marketplace, Craigslist, Ebay, and bookoo.
Look for Lost Money
Check the The National Association of Unclaimed Property Administrators (NAUPA) website. They reunite unclaimed property with the rightful owner. You could have money sitting in an old bank account somewhere.
Get a Second Job
If you’re unable to get a raise from your current employer, then try earning some extra cash with a second job. This option can make sense for someone who is young and not yet fully established in their professional lives.
Down payment Programs and Assistance
Programs can include loans, grants, tax credits and other programs for eligible homebuyers that can help them achieve the down payment faster, cover closing costs and get into a home sooner than they would have otherwise. State Housing Finance Agencies (HFA) often offer the broadest array of opportunities. Cities and Counties offer programs with criteria adjusted for local median income and home prices.
http://www.tdhca.state.tx.us/homeownership/fthb/index.htm
