Sure, 20 percent down payments rock, but what average person has that much money they can let go of at one time? I don’t know many, and I certainly wasn’t one when I purchased my first home. You don’t need to feel discouraged if you can’t fork over that much money for a down payment. There are plenty of borrowing options that include paying less up front.
Need help thinking of creative ways to come up with funds for a down payment? Buying a home is stressful and takes more money than most people realize. Let’s get creative and break convention for a moment as we discover some unique ways to purchase that little slice of freedom!
- Assistance programs. If you’re a first-time homebuyer, chances are there’s a program that may help you in either coming up with funds or only requiring a certain down payment. Local programs are the best to look into, but there are a couple federal ones you may qualify for as well.
- Yard sale. You’re moving from somewhere, right? Purge the old and make some cash in the process! Sell furniture that won’t fit your space, or items you just don’t like or use. Then you’ll have more money and less to move!
- Ditch your car note. I’ve never had a car payment, and I don’t plan on it. Swap out that newer car with a hefty monthly payment for something less glamorous or try to buy a cheaper one out right. This is really important because even if you cash in your car, you may still have room to buy a cheaper car and aid your down payment. That extra cash can go toward your mortgage!
- Try a side job. Make the most of a hobby or something easy to do on the weekend to make extra money for your home purchase.
- Tax refunds. Other than paying off debts, using a tax refund towards a home purchase is a GREAT idea!
- Register for it (sorta). If you’re getting married, having a baby, or moving in with someone, or celebrating any life event where family and friends want to contribute, ask them to contribute to your down payment in lieu of buying presents.
That dream home can be a dream come true home! Think ahead, stick to your plan, and consider the long term affects. Play smart and work hard. Owning a home isn’t easy and paying for it takes responsibility, discipline, and prioritizing, but you can do it!
Still planning to buy that home?