Funding Your Down Payment

The larger your down payment, the less money you'll have to borrow to finance your home purchase. 

SAVINGS: Most homebuyers make sacrifices and put the money they've saved aside for their down payment.

PROCEEDS FROM ANOTHER RESIDENCE: This is how most repeat buyers fund the purchase of their next home.

GIFTS FROM FAMILY OR FRIENDS: Be sure to speak to a tax professional to find out how gifts will impact your tax filing.

INVESTMENTS: Speak with your financial advisor about cashing out some of your assets.

IRA: If you're a first-time homebuyer, you may be able to withdraw money from your IRA without having to pay a 10% penalty.

401(K): You may be able to borrow a portion of your 401(k); however, it will be taxed if you do not repay it.

27% of first-time buyers were given money by a relative or friends to use toward their down payments.

-info taken from Buffini & Company Newsletter