17 Jun 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!