Are there ways for me to get help for a downpayment?

Question

What options are there for me to get assistance in a downpayment? I’m not sure if there is, but coming up with the finances is very hard all of a sudden, and the math never pans out when I work on it.

Thanks for the help in advance!

Charles Carillo · Answer

Account Closed

Real estate is a very capital-intensive business and I always recommend to new investors who are having issues putting together the down payment, to hold off until they have funds for not only the down payment but for repairs and deferred maintenance of a property, in addition to a reserve. Properties require consistent repairs and maintenance and if you are renting a property, tenants do not always pay on time (or at all). Having limited funds when investing in a property, is a recipe for disaster. Build up the funds so that when you purchase, you are not put into a difficult position if your business plan does not work out perfectly.

Justin Hammerle · Answer

Account Closed - you can check to see if there are any grants available in your area that you could take advantage of; best resource for that would likely be a mortgage broker.  RI has a fantastic grant which covers up to $17.5K of your DP and closing costs for first time homebuyers.

Nathan Faselt · Answer

• Down Payment Assistance Programs: Many states and local governments offer down payment assistance programs that provide grants, forgivable loans, or low-interest loans to help first-time homebuyers with down payments and closing costs. You can check with your state or local housing agency to see if you qualify for any such programs.
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• Employer Assistance Programs: Some employers offer down payment assistance programs or employee loans to help employees with home purchases. You can check with your HR department to see if your employer has any such programs.
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• Borrow from Your Retirement Savings: If you have a retirement account like a 401(k) or IRA, you may be able to borrow against it to help with a down payment. However, this option comes with some risks, so it's important to consult with a financial advisor before going this route.
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• Gift from Family or Friends: Another option is to receive a gift from a family member or friend to help with your down payment. However, keep in mind that there are limits on the amount of gift money you can receive without it being subject to gift taxes.
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• FHA Loans: The Federal Housing Administration (FHA) offers loans that require a lower down payment than conventional loans, typically 3.5% of the purchase price. However, FHA loans do require mortgage insurance, which can increase the overall cost of the loan.

Account Closed · Answer

Hi Emily, here are some ways that might help you with down payments.

First, there are government assistance programs where state or local governments may offer down payment assistance programs. This is if you're a first-time homebuyer, and will help you with purchasing your home. Be sure to check with your local housing authority or state housing agency to see if there are any programs available. There are also non-profit organizations that provide down payment assistance to homebuyers. These organizations provide grants or loans that can be used to cover the down payment and closing costs. An example of these organizations may be National Homebuyers Fund. Also, your employer(if you work for somebody) can offer you assistance as a part of the employee benefits package. They'll usually give you a loan or a grant that you can use for your purchase.

As always with real estate investing, having a fairly large enough cash reserve will help you a lot and will come in clutch when you decide to rent out your place to other people. It’s very important because if your roof suddenly breaks, you will have to pay cash to fix the roof, and it’s quite a big expense. These are called CapEx in Brandon Turner’s books. They don't occur often, but if they break, you'll need a lot of cash.

Lastly, if you’re investing with low money, 'The Book on Investing in Real Estate with No (and Low) Money Down’ by Brandon Turner might be a great help to you!

I hope this helps! :)

Kelsey Jurewicz · Answer

I second this, but just make sure whoever you speak to regarding the grant/down payment assistance, you ask for the repayment details. Most assistance programs I see almost always make you pay them back, whether that be when you refinance or when you go to sell.

Are there ways for me to get help for a downpayment?

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