subject: Money For Down Payment [print this page] Oh you are so excited, you found the perfect home and are ready to sign on the dotted line. Oops...money for down payment? What do you mean! I have to give you some money! Unfortunately, many first time home buyers forget this important part of buying a home. They have looked into their finances and decided they could afford the mortgage payment. But, forgot to save the money for down payment. Let us take a look at what you might be able to do.
Here are some things you might check into:
Down payment assistance programs
Home mortgage grants
Start a savings program
Tax return money
Take on a second job
Down Payment Assistance Programs
There are many programs out there for home buyers that need money for down payment. You just have to search your local and state agencies to see what is available for your state. There are also many nonprofit charitable organizations and community groups that will help home buyers with money for down payment. You just have to find out what their requirements are. These too you can search your local and state housing authorities for what will work in your state.
Home Mortgage Grants
Each state may have home mortgage grants that will help with the money for down payment. Usually a grant does not have to be paid back. Some of these grants have a catch to them. You may be required to live in the home a certain number of years for the money to be classified a grant. If you moved before the yearly requirement, you may have to pay the money back. So make sure you plan to live in the home for the number of years they require, otherwise your grant then becomes a loan.
Most states only have so much money each year for the grant program. Once the money is gone, you have to wait until the next year. So act quickly with your research and grant application process.
Start a Savings Program
If you have time to save, start a savings program. This is one of the best ways to obtain the money for down payment. Take some money out of every check and put it in savings. Ideally the same amount out each check will grow quickly. Take a close look at your spending habits. Could you cut back on eating out? Perhaps pack a lunch for work. Many people spend an easy $7 to $10 for lunch everyday. That could add up to $35 to $50 a week. There is the money you can save for your down payment.
Save Your Tax Return Money
Many plan their withholdings so they get a huge tax return every year. So if saving is hard for you, then change your withholdings to single zero. Now you will have a huge return. But do not spend that return. Put that money in an account for your down payment. Just changing your withholding could allow you to save money for down payment!
Take a Second Job
If all else fails, you could get a second job or if your in construction you could take on side jobs and save those earnings for money for down payment. Remember this is temporary and save all you make so you will have that down payment quickly.
So do not get discouraged. It is possible to obtain money for down payment. There are other possibilities like using a loan program that will allow gift money. Then a family member could gift you that money. Or perhaps there are things you could sell. All of us have many things we do not really use.
All of these options may take some time and effort. But before long you will have the money needed. What a great feeling to own your own home!
by: Jeffrey S. Ragan
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