Foreclosures are on the rise. Lenders are tightening their belts and their lending practices. No money down loan programs are becoming harder to find, which means Vermont home buyers need to have money available for a down payment. Here are some tips on how to come up with the down payment.
1. Ask for help.
Ask relatives if they would be willing to contribute to your down payment or give you a no interest loan with no repayment time frame.
2. Borrow from your life insurance.
If your life insurance has built up value, you can borrow against it. this does not count as a debt because you are borrowing from yourself.
3. Borrow from your IRA.
First-time home buyers can take $10,000 for an IRA to put toward a home purchase, penalty free.
4. Increase your income.
Get a second job and stash or do free lance work.
5. Change your withholding taxes.
This will give you more take-home pay, which you can start saving!
6. Consider government backed loans.
VA and FHA loans require lower down payments and there are many state loan programs available.
For more information on how to save your down payment and the Vermont home buying process, visit my website or give me a call at 800-659-1819 #103 for more personal service.