Three Places to Find Money for a Down Payment
When my St. Louis County real estate buyers have trouble putting together a down payment… Buyers who don’t have a 20 percent down payment are finding it harder and harder to buy a home. Here are some sources of money that are still available.
1. Borrowing from a 401(k). Only some companies allow this. The maximum available is $50,000 ($100,00 if both spouses have 401(k)s) and the loan must be repaid within five years.
2. Withdrawing up to $10,000 from an IRA for a purchase of a first home. A potential borrower who hasn’t owned a home in the past three years is considered a “first-time buyer” for this specific purpose.
3. A gift. If buyers are comfortable asking for money, their parents, friends, and relatives can give a gift toward the down payment.
Call Nolting Real Estate at 636 391 9997 for more information.
Category : Blog
