Kathleen Finnegan

Saving For a Down Payment?

Ever wonder where the money comes from for a down payment on a new home?

Here are the three common sources home buyers use to reach their down payment goal.

Savings: It’s clear that the most common down payment source is from savings. Putting money aside for a few months allows new home buyers the confidence to move forward.

Gifts from Family and Friends: Many home buyers rely on a friend or family member to help with their down payment on a home. Having a trusted family member or friend offer this support has been beneficial for several home buyers. Many times the buyer may also have to receive a letter from the giver, stating the funds are a gift and not a loan requiring repayment.

Borrowing from Retirement: It is completely reasonable to consider borrowing from your individual retirement account to pay for a new home. Before removing any funds from your retirement, be sure to consider what your overall financial health will be in the coming future.

While a majority of buyers stated that they were able to save by cutting spending, many took on other options to reach their savings goal. Take a look at the chart below, to see how several home buyers chose to save.

Have more questions? Contact us here.

This entry was posted on Monday, October 24th, 2016 at 11:13 am and is filed under Homeowner Misc, Item of Value, Tips & Tricks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.