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.