Weekly Real Estate Article #33

Weekly Real Estate Article #33

3 Creative ways to obtain money for a down payment for a home!

1)  Get a loan on a car, boat or motorhome! A lender will accept money for a down payment as long as it is tied to something of security!  If you have something to secure a loan with, then the lenders consider these good funds and will allow those funds to be used as a down payment.  They will use the payment against you; however, this could be an option that we should discuss if it makes sense

2) Even if you are NOT a first time homebuyer, you could potentially get a loan against your 401K and use these funds for your down payment!  Some companies allow their employees the option of getting a loan of up to 50% of their retirement to be used for a down payment!  These funds are often at a low rate and the payment length could make this payment low so in the home buying qualification process, this could be a great option!

3)  Get a loan against another home! If you currently have a home and would like to purchase another one, you could either refinance and pull money out and use the equity to purchase a replacement home.  This way you could be in your new home and either keep your existing home as a rental or sell it after you have moved!

All three of these options have you incurring a loan, and the loan will have to be counted when you are qualifying to purchase a home, however, there are times when this totally makes sense!  Let’s chat if you think this is something you might wish to consider!