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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.

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Kathleen Finnegan

23925 Park Sorrento
Calabasas, Ca 91302

Office 818-876-3111
Cell 818-601-0056