1. Ask for a gift from any family member. Most lenders accept gift letters for your down payment.
2. Borrow the money from a family member. Many lenders accept family loans.
3. Borrow the money from a non-family member: employer, friend, Non Profit Group or Government. $8000 Tax Rebate but must be closed by 11/30/09
4. Borrow from your insurance policy.
5. Borrow from your stock account.
6. Borrow from your retirement account. Your home is a great retirement asset. Why not own one as soon as you can. http://www.brokeragentsocial.com/BobPhillips/blog/2981/
7. Borrow from your credit cards. Most lenders do not approve of this unless your down payment is over 20%
8. Get one or more unsecured loans from your bank or credit union.
9. Find a partner to buy with you: friend, relative or investor.
10. Find a co-signer. You and cosigner must qualify.
11. Finance or refinance another asset you have:
House, lot, boat, car, jewelry or ? you may be able to use that asset as collateral.
12. Sell an asset: Anything of value! Many people are getting great prices on Internet auction sites, the worlds largest free classifieds.
13. Trade something of value with the seller. One of your assets or your skills. (What do you do for a vocation or hobby that may be of value to the seller)
14. Get a second job. There can be significant tax benefits to an “in home” business, even if you live in a rental.
15. Ask the seller to pay for your down payment, closing costs or even pay off your debits. The presentation of this type of request is critical. You must show why it is in the sellers best interest to do so.
16. Increase the price so the seller feels comfortable paying your costs or debits.
17. Ask the seller to carry some or all of the financing.
18. Spend Less! Do you really need a Starbucks 1-2 times a day when regular coffee will work. Slim down those TV and Cell Phone packages for awhile.
19. It’s all about determining what is REALLY important to you. What are you willing to do to own a home and reap the tax, lifestyle, appreciation and equity benefits you will get?
If you can think of other ways to legally get or increase your downpayment, please let me know.
Dennis Smith 760-436-0087
Taylor Place Real Estate