ne of the biggest hurdles overcome. They skimp and save
to buying a home is the everything they can, but saving
down payment. Saving up a up many thousands of dollars can
chunk of change can be difficult, take time and be frustrating.
so getting creative is a key. Fortunately, many first time
buyers have already been saving
Down Payments up for their down payments, but
don't realize it.
The amount of your down payment
is dependent upon many potential Getting Creative
issues, but two come to the
forefront. Each of these can The Bank of You - The federal
reduce or increase the amount of government looks very favorably
cash you have to come up with for on home ownership. This means it
the home of your dreams. makes every effort to promote the
real estate market through
1. Credit Score - Generally, the incentives and tax breaks. Once
better your score, the lower the such incentive is a unique little
down payment. twist built into the laws
controlling 401k savings plans.
2. Price - The selling price of The tweak in these laws allows
the home is key because the down you to...well, borrow from the
payment is expressed as a bank of you.
percentage of the home price or
appraisal amount. With most 401k plans, you have
the right to borrow up to 50
Either way, the down payment can percent of the vested amount of
amount to a serious chunk of your account. If you've managed
change. For many first time to save $50,000 over the years in
buyers, this is a huge hurdle to your 401k, you can take a loan
from the account for up to In essence, you have used your
$25,000. This, of course, should 401k money to play a shell game
be used for the down payment on with the down payment. In the
your home. After getting into the end, this creative down payment
home, you can simply pay off the funding strategy gets you over
401k loan over five years or you the down payment hurdle and into
can take out a home equity loan your home.
and repay it with that money.
About the Author:
Dan Lewis is with http://www.gwhomeloans.com - San Diego mortgage brokers providing San Diego home loans. Visit http://www.gwhomeloans.com/services.html to learn more about options on San Diego mortgages from a San Diego mortgage broker company.
Source: www.isnare.com
