As discussed in part one of ways for coming up with a down payment, if you are serious about buying a house, you have some great options to help you succeed. Typically, these options require dedication and sometimes, hard work but once you are settled into your new home, you will agree it was well worth it.
For starters, you can accept a cash gift from a family member. In this case, tax laws permit this type of gift consisting of several thousand dollars each year without any type of fees for the person giving the gift or the person receiving the gift. Because the amount is adjusted on an annual basis, you want to check with a tax advisor to determine the current guidelines. The good news about using a cash gift as a down payment is that while family is typically the first choice, it can be from anyone.
Although most people are not interested in working a second job, during the time you save for the down payment, it is a way to earn extra cash. Perhaps you could work a few hours at the local grocery store, at a floral shop, or even from your home doing research. All of the money earned would be put aside, specifically for the down payment on your home. You would be amazed at just how quickly the money will add up.
You might also take stock of items you have around the house and sell them through online auctions such as eBay. With online auctions being a place where you can sell literally anything, this would be the ideal solution for selling clothing items, unwanted perfume, curtains, picture frames, appliances, tools, literally anything. Again, by getting rid of things you do not use or want, you can begin to build your funds for the down payment on your new home.
Talk to your lender about programs that are specifically designed to help people with the down payment. By taking advantage of these programs, you can find a viable solution for getting into the home of your dreams without having to pay high interest costs. Best of all, these programs come in a variety of options, meaning there is something to fit the needs of anyone. Then, begin to cut back on non-essential spending, putting your spare change in a jar or the bank. For instance, rather than buy lunch at work, start making your own. Typically, you could save as much as $5 a day just on lunches alone.