Where To Get your Down Payment from?

home savings

Here are just a few options of where your down payment can come from when purchasing a new home.

  • Savings/Checking Accounts – This is money that you have saved from your own income and paychecks
  • 401K Loan/Distribution – Some 401K plans allow you to take a loan against your 401K or a distribution.  Check with  your 401K plan Administrator as there may be fees/penalties for doing this
  • Proceeds from the sale of Real Estate – This can be the profit you are making from the sale of your current home or other real estate
  • Gift Funds from a Relative – These are funds that a relative would gift you to help your purchaes a home.  There is a paper trail of the funds required and usually a signed letter from the relative stating this is a gift and not a loan to be repaid to them
  • Collateralized Loan – These are funds from a loan secured by some type of collateral like a vehicle, boat, motorcycle, etc
  • Tax Refund – This is money you receive back from the IRS after filing your yearly taxes
  • Down Payment Assistance – This is funds you receive from down payment assistance programs by local or state government entities or agencies

Please contact us if you would like to learn more about purchasing a home and what options you have for your Down Payment.

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