San Diego, CA (PRWEB) May 28, 2014
LoanLove.com is a borrower advice website dedicated to helping home buyers to find loans that they will love. One of the first things that those seeking to buy a home will have to contend with is gathering enough cash to put down a down payment on their home, unless of course they were able to qualify for a no or low-down payment loan program, such as the VA provides for example. While getting off scot-free when it comes to down payment on a home is a possibility for some home buyers, the fact is most home buyers will need to look into what home loan down payment strategies are available to them, in order to be able to afford their house without suffering too much financially in other ways. A new article from Loan Love takes a look at some home buyer down payment assistance strategies that can help home buyers find their best options.
The new guide, titled “Home Loan Down Payment Assistance (Know Your Options)” explains that coming up with the money for a down payment can be one of the most challenging parts of buying a home. However, before potential home buyers jump at any chance to get their hands on that money, the Loan Love guide suggests that they ask these four questions: “1. Are you able to verify beyond any doubt that the source of your down payment is legal and not a scam? 2. Has your bank lender or mortgage broker confirmed that your potential source is an approved one, according to the rules of your particular loan program? 3. Have you reviewed your plan with a certified public accountant to determine impacts on your taxes and/or retirement account, as applicable? 4. Are you prepared to keep a detailed paper trail of any transactions for both your lender and for tax purposes?”
Loan Love then suggests that those who are seeking home loan down payment assistance try one or more of the following low risk options:
- “Investigate state and local housing incentives.
- Ask friends and family.
- Maximize your savings.
- Liquidate unnecessary assets.
- Sell any stock options.
- Sell off other investments.
- Cash in a life insurance policy.
- Check with your employer.”
Some other options that home buyers can check into if the above suggestions do not yield results are also discussed. These home loan down payment assistance options do carry a bit more risk, or are more heavily taxable etc. but they can be good options for those who are prepared to take on the responsibility. For those who are, Loan Love suggests to:
- “Ask your lender.
- Negotiate with your seller.
- Bank with your seller.
- Tap your IRA.
- Borrow from your 401(k).
- Time a job change.”
For a fuller explanation on the bullet points listed here, read the full home loan down payment assistance guide at LoanLove.com.