Your Down Payment

You've finally found the home of your dreams. There's just one thing standing between you and your new house: The down payment.

Most mortgage programs now require a down payment. For some people this number is easy to attain or maybe even a larger down payment. If you are not one of these people lets discuss some options that will help you get your down payment for your dream home.

401k

There are 2 ways to get your down payment out of your 401k account. The first one is as a hardship. This allows you to withdraw the money from your 401k for the purchase of your home. You will have to pay taxes and penalties on the money withdrawn. For more information on this option, contact your HR department on the specifics of withdrawing the money.

Another approach may be to borrow against your 401(K) – often as much as 50 percent of your account balance. You pay interest on the loan, but the interest goes back into your account. The money you receive is not taxable as long it is paid back and there are plans that can give you anywhere from five to 30 years to pay back your loan.

Gift

On many mortgage programs you entire down payment can be from a gift. These gifts must be from an immediate family member, such as a brother, sister, parents, aunt, uncle, etc. It must be in the form of a gift and not a loan. And the relative must document that they have the money, ex. bank statements.