Raising a Down Payment for DFW Real Estate
Home ownership rates have increased from 25% in the early 1900s to 67% in 1999. During all these years, many home buyers struggled to come up with a down payment. Years ago, in some cases, the banks required as much as a 50% down payment before they would give them a mortgage. Today, generally, the down payment is 20%; however, few people have that much cash available to them. With the popular FHA loans they require only 3.5% down. But the fact remains that the more a buyer puts down, the lower the mortgage. Low mortgage balances will carry low mortgage payments. Here are nine ways to find that down payment. 1) Save Your Tax Refund If you are having a challenge saving money, you can change your withholding exemptions to zero. This will force your employer to pay more to the IRS which will reduce your paycheck by that amount. This method assures a larger income tax refund. 2) Borrow From Your Parents Many first time homebuyers ask their parents for funds to put towards a down payment on a home. Favorable tax laws allow for parent to gift a certain amount of money without tax consequences (check with your CPA). 3) Save Money on ScheduleThe way to make your savings account grow is to make scheduled deposits at the same time every month. Example, if you get paid every two weeks and you save $300 from every paycheck, at the end of 12 months, you will have saved more than $3,600. 4) Sell Stuff on eBayLike everybody else you probably have too much stuff. Some people spend a ton of money each year on storage units where this stuff is stashed. Look all around your home, in your attic, your basement, under your bed and in your closets. If you haven't used it in a year, sell it! 5) Ask SellerIn this buyers market if you pay the seller's asking price, you should ask the seller to pay money towards your closing cost/down payment. Make sure you check with your lender before asking for the credit because they have strict requirements as to if and how much money you can receive from the seller. 6) Government ProgramsIf you have ever been in the military, you may qualify for a Veterans Administration (VA) loan. The government also has a slew of down payment assistance programs for first-time home buyers. You can also check with your county or city to see if they offer special programs to induce home ownership in certain neighborhoods. 7) Take a Second JobSome would be homeowners will sacrifice their evenings and weekends to work part-time at a second job. If it's a short-term situation, it might not be that hard to do. It could also be seasonal work such as from Thanksgiving to Christmas or specialty work around tax time in the spring. 8) Tap Your Retirement FundsCertain types of retirement accounts will allow you borrow from them in order to purchase a home. Check with your CPA or Retirement Plan Administrator for current regulations. Some types of requirement accounts will even allow you take out some of the principal without a penalty. 9) 100% FinancingIf you have excellent credit, you may qualify for a 100% financing. This could be a single mortgage with mortgage insurance, or you may qualify for a second mortgage commonly referred to as am 80/20 loan. Talk to your mortgage broker to see which programs may be available for you. The bottom line is that owning is obtainable if you work hard, save money and work with a professional DFW Realtor and Lender. Tip: Get you Realtor to search the for a great deal on a generally this is where you will find the best values. 
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