Down Payment – Where to find it….

When buying a home many times the biggest hurdle seems to be the downpayment. Many people spend years trying to save for a down payment.  It takes a great deal of financial discipline and planning.  The larger the downpayment the lower the monthly payment.  This information from Trulia is important to those who struggle to put together the funds to finally purchase their dream home.

What programs exist today to help with a downpayment?

1. Local downpayment assistance programs – Some are for first time homebuyers OR for buyers with low or moderate incomes.  Many times potential buyers must…

  • bringing their own funds to the table
  • picking a home that meets certain minimum condition criteria and/or
  • completing a course of homeowner education classes

to qualify for these funds.  Your Realtor may be able to direct you to some of these programs (eg in Massachussets there is Mass Housing assistance

2. Parents, Family, Friends – Some programs will allow some portion of the downpayment be in the form of “gift money”.  Many times lenders will require that a gift letter be provided stating that the person is a relative and that the money is a gift (not a loan).   There may also be an opportunity thru another program (not requiring the person to be a relative) – FHA Bridal Registry which allows couples to open a registry account with their FHA mortage lender and deposit checks from anyone who wishes to give them monies.   Check with your lender to see if this is an option and, if so, how to open such an account.

3. Your Employer – Some universities, municipal agencies,  and other large and small employers may make down payment and other home buying assistance programs available to their employees.  Check with Human Resources to see what might be available.

4. Personal income.  Set a budget and stick to it.  Find areas in your daily spending that you can cut back on….It’s possible you could save $5k or more just by looking at and watching your daily spending.  Redirect these dollars to your downpayment savings account.  Here is where knowledge is power.  Knowing where you might be wasting money and saving it could mean your dream home is a reality.

5. Your assets – If you have a retirement account, you may be able to borrow against or take out funds (penalty free) towards a downpayment.

Clean house – Yes and you are looking for items that you don’t need and don’t use.  Turn them into cash through flea markets, yard sales, consignment stores, and online websites like Ebay.

Use any of these tools to make home ownership a reality for you and your family and use a Realtor to find that home. 

Joan Parcewski, Realtor & Notary                                                                                                

GRI (Graduate Real Estate Institute, CBR (Certified Buyers Representative), SFR (Short Sale & Foreclosure Resource), LMC (Loss Mitigation Certified), CDPE (Certified Distressed Property Expert), CIAS (Certified Investor Agent Specialist), SRES (Senior Real Estate Specialist), GREEN

YOU are my Top Priority.  I believe that ongoing Education as well as Experience are important components of success both personally and professionally.  Let’s work together to implement the most current strategies to make YOU successful in your real estate journey, while building a lifetime relationship.


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