Rent prices are quickly outpacing mortgages. With no end in sight and the availability of low, fixed-rate mortgages, this is quite literally a great time to save for a down payment and consider buying.
Coming up with the 3.5% down payment required for the FHA loan can be tough. Here are some actual strategies to help you save for a down payment.
Ask Your Family
By law your parents can gift you up to $14,000 a year, tax-free. This jumps up to $28,000 if your mom and dad each gifts you $14,000 individually. If you happen to be married you can receive up to $56,000 dollars under the previous example. This is serious money. It must be disclosed to your lender, but it’s still perfectly legal.
Reduce Large Expenses
Now this one is tough because it usually involves a lifestyle change, but if enacted, some serious savings can be made. More often than not, your rent payment is going to be your largest expense each month. Consider downsizing or bringing on a roommate to help you save a few hundred bucks each month. Another option is to ditch your car payment. If possible, consider alternate means of travel to-and-from work. Public transportation and a sturdy bicycle are not only great ways to save, they’re also great for the environment.
Set Aside Any Extra Cash
Have a side job? Automatically set aside any and all accrued funds. This may take some time, but the savings will ultimately be worth it. If you’re expecting a sizable tax return, this too should be set aside for saving. It may be tempting to spend, but once you place the money down for your very own home it will be all worth it.
Speak with the Gore Group Realty team to learn about all of the great Henderson real estate options available for you.