Five Ways to Fund a Down Payment

I often get the question..."How much money do I need for a Down Payment on a home?"

Some people may be surprised that it only takes 3% (January 1, 2009 it raises to 3.5%) to fund a down payment for a FHA loan.

Here are the TOP 5 ways to get a Down Payment to Purchase your Home.

1. The New Tax Credit- for a limited time only, the government will give 1st Time Homebuyers (who have not owned a home in the last 3 years) a tax credit up to $7,500, when purchasing a home.





2. Gift Funds- a gift from a relative is permissible for either a FHA or conventional loan.





3. Down Payment Assistance- many programs have been eliminated, however there is still some assistance available for quailified borrowers. Ask me for more details.





4. Borrow against your 401 K - if you conribute to your company 401k you may be able to borrow against your retirement funds. Check with your HR benefits Specialist for details.





5. Save and Sell- Save your tax refund, sell items you no longer need on Ebay or Craig's List. Take on a part time job or work over time hours. Even a small amount saved can add up over time.

Investment in a Home has always been a good sound investment. It can result in tax savings and appreciation over time. Ask me for more information.