Buying a home is a huge financial step and requires careful planning and sometimes years of saving up the money you can. But, what do you do when you find the home you love and don’t have enough saved to cover the down payment? Here are four innovative ways to come up with a down payment for the next home you fall in love with.
Sell A Recreational Vehicle, Boat, or Additional Car
Selling a boat, RV or second car you own can provide you with the fast cash you need to make the down payment of your home. As long as there is a paper trail of the money into your account, proving that you have it in your possession and how it got there, you are free to use that money as your down payment for your home.
Ask a Cosigner
If you’re in a situation where it’s possible, ask your parents or close relatives if they would be willing to co-sign for your loan. If you are a new home-buyer, they might be more willing to help you since you’re just starting out. This could give you the extra boost you need to make the home yours.
Find a Partner
This can be risky to do on your home, however finding a partner who will put up some cash for your down payment might be in your best interest. You will have an equity-sharing partnership, which will entitle them to half of the eventual resale profits. You will be making the monthly payments on the home, so in some partnerships this may not be the best option.
Look for a Foreclosure
Looking for a home that has been foreclosed on and you might not have to pay a down payment at all. It can be kind of a risk, but if it makes sense for you, go for it. Some lenders and government agencies will require a small down payment, or none at all if your credit is good.
When you find the home you love, you shouldn’t pass it up because making the down payment seems out of reach. If the home is sustainable and you plan to live there for a decent amount of time, there are creative ways to come up with the down payment. For more information about innovative ways to come up with a down payment, visit here.