Hi & Welcome Back to #FabulousFriday! Looking to buy your dream home in 2023? Home prices keep rising--which means saving the required down payment for a house can be tough. We have some suggestions:
- Using a 401(k) loan to help you buy a home
First, your employer must allow 401(k) loans as a part of your retirement plan. Next, the maximum loan amount is 50% of your 401(k)'s vested account balance or $50,000.00, whichever is less. Then, the loan must be paid back with interest on a schedule agreed to by you and your 401(k) provider.
But, before you turn to your retirement savings, here are other options for buying your home:
Many buyers assume they need 20% down to buy a home. But, many home buyers can qualify with much less cash. Some of the most popular programs include:
- Low Down Payment Loan Options
FHA loans-these allow as little as 3.5% down and some only require a 580 credit score
VA loans-available to veterans and service members with 0% down!
- Down Payment & Closing Cost Assistance
Down Payment assistance programs are available locally. There are grants and low-interest loans, which can cover down payments and also closing costs. If you need help buying a home, a down payment assistance program could be the best choice for you.
Lenders who offer special programs or incentives. You may qualify for special programs, or credits depending on your employment or situation.
- Gift Funds
Some home loan programs allow you to cover your down payment and your closing costs using gift funds from a family member or friend. These funds must be specially documented, so be sure to talk with your real estate agent and loan officer for more details.
There are many options available for 1st Time Home Buyers needing tips for finding cash. At Shaffer Realty and Real Estate we are here to help. Call us today to schedule a buyer consultation and we can discuss the best strategies for your dream home purchase! See you next Friday. Warmly, Susan