You have heard it a thousand times...Now is a great time to buy over and over. You know they are right and you are ready to take the plunge. Finally you have the right job and your credit is in good shape. So what is holding your back? More often than not it is the down payment money. The current Columbus financial market is requiring 3.5% for FHA and 5% for conventional. It is important to understand that you will need to save money. However, there are still options out there to assist you with Down Payment. In this post we will explore three ways that you can get down payment money to help you purchase that dream home.
Look To Those Who Can Help
Here in the Columbus Area we are fortunate to have several programs that can assist with down payment money. The resources are limited so they are usually first come first served. Most require that you meet specific income guidelines and that you participate in a home buyer's education course. A few local organizations that provide down payment assistance include The Columbus Housing Partnership, Homes on the Hill and Mid Ohio Regional Planning Commission (MORPC).
Recently, the Ohio Housing Finance Authority announced the availability of a program that will allow qualified buyers the opportunity to use some of the $8000 tax credit money towards down payment and closing cost.
Ask Your Rich Uncle
Uncle Sam will allow you to use up to $10,000 of your IRA funds as a down payment. If you are married and both of you are first time home owners you could potentially take up to $20,000 from your accounts. There are details that may even allow you to use these funds, without penalty, even it this is not your first home. As always, do your research and check with your tax accountant for details on your specific situation.
Borrow From Your Self
What better creditor than yourself? If you have a retirement plan with your company you may consider borrowing against your 401K. Unlike tapping into your IRA, this will be money you will need to pay back; however, the interest payments on the loan will be going back to your 401K. There are down sides to borrowing from your 401K, so do your homework. Just as with your IRA you will need to check with your accountant for advice on your personal finances.
Now is the time to buy and if you have questions regarding down payment of any other real estate questions call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com.
For more down payment info:
$8000 Dollar Tax Credit = Down Payment Assistance Hurry Limited Funds!!!
Hi Vanessa, and if a Seller has plenty of equity in a house a second lien could be done with seller financing or if the property is free and clear seller financing may be an option too. It all depends if they are flexible with the down payment. Great post in pointing out the options.
Great post for consumers.
Hi Vanessa, this is a very informative post. First time buyers have an excellent opportunity to buy now with all of these options.
Vanessa,
This is excellent informtion. So many times, first time homebuyers are stuck trying to figure out where to get money for a downpayment.
Thanks for sharing this valuable info.
Make This YOUR Best Year Ever
Leander
u bet....it's time for the media to trumpet the opportunity....there is good housing news...celebrate it !
I like how you said, borrow from your rich uncle!
Diane
Great post. We need to be creative in helping buyers get into their first home!