The median household income for a first time homebuyer was 91,600 dollars in 2017.
Whether you fit this profile or not, you can get a down payment on your first home if you know some strategies for doing so.
Some of these strategies will be outlined here so that you can get to your goal as quickly as possible. Even if you have been feeling discouraged its time to get energized and start strategizing so that you can make your dream a reality this year.
Here is your guide to how to get a down payment on your first home.
Table of Contents
1. Cut Your Spending
When you have a big goal such as making a down payment on a house its time to take a hard analytic look at your personal finances. You may be surprised to see all the areas in which you could possibly save money when you start making a budget.
Create a separate account for your bills. This will help you to get a clearer picture of how much money is actually yours to spend after you get paid.
Cut your spending on food. Eat at and from home more often to save money. This may mean starting to make your own lunch.
Cut your entertainment bill. If you like going to the movies or clubs when you’re trying to save it may be best to just, “Netflix and chill” until you reach your goal.
2. Get a Second Job
If you can spare the time then get a second job, at least temporarily. If it is too tiring to go to another job right after your weekly job, you could try getting a job on weekends only.
However, these days there are so many remote opportunities you don’t need to actually commute to have a second job. If you can write you can start a side career as a freelance writer, if you have a particular talent you can go to Fiverr or People per Hour and sign up to offer your services.
If you are a native English speaker with at least a Bachelor’s degree companies will hire you to teach English remotely to non-native speakers. There are also opportunities to do surveys that will help you make extra money.
3. Tap into Your IRA
If you have an Individual Retirement Accounts (IRA) you are allowed to withdraw at least ten thousand dollars of these funds to purchase your first home.
If you are married then it gets even better because you can both withdraw at the same time and end up with twenty thousand dollars. Normally a withdrawal before the age of fifty-nine would incur a tax penalty. However, in this case, it won’t, although you will still have to make regular income tax payments on the withdrawal.
It doesn’t matter if you are buying a traditional home or a manufactured home Individual Retirement Accounts can help you. You can then secure other regular home and manufactured home loans to complete your purchase.
4. Down Payment Assistance Programs
There are several national downpayment assistance programs available to help you make a down payment on a home. The National Homebuyers Fund can provide you with up to five percent of your down payment.
It will usually do this by issuing a grant that will help you to make your down payment. However, the National Homebuyers Fund is not available in all states and the size of the loans will vary.
In order to find out if the funding is available in your state contact the Fund directly.
Final Thoughts on How to Get a Down Payment on a Home
If you have been looking for ideas about how to get a down payment on a house you now know a few good ones. The key is to make use of all the programs available to you and to take care of your personal finances.
You may even have to take on a second job or some overtime to balance things out but in the end, it will be worth it.
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