9 Strategies To Get a Large Down Payment

One of the hardest parts of buying a new Livonia house is finding the money for a down payment.  Having a good down payment can mean the difference between securing a loan and waiting another year to buy a house.  While the amount can feel exuberant, there are many ways to save for that down payment.

Start With Credit Cards

Credit cards are an easy way to make purchases and be stuck paying for them for years to come.  High-interest rates can make it hard to pay down the debt that is on a card or spread out between a few cards.  Start paying on the card that has the highest interest rate.

Once this card is paid off, used that money to pay down the rest of the cards.  This helps to reduce the amount that is spent on interest charges. Many people find it is quicker to pay debt down in this way.

Invest Wisely

Investing money when trying to save seems counterproductive, but it can pay out in the end.  Using CD accounts can help someone save more money and even make a little extra once it matures.  One strategy is to ladder CD accounts.

Laddering makes it easier to adjust where money is being invested and get the best rates.  Use the money that would be invested in multiple CDs with each one maturing at a different stage like one-year, six months, or three months.

Get Help

There are many programs that are made for first-time Livonia home buyers.  Most will ask the home buyer to take a class or learn about mortgages, but they will receive a portion of their down payment without needing to pay it back.  There are also grants that some lenders may know of that are available to buyers to help pay a portion of the down payment.

Retirement Account Money

A person will not have any tax penalties for pulling up to ten thousand dollars from their individual retirement account if they have not owned another home in the last three years.  If a married couple is borrowing from their IRA accounts they can get twenty thousand dollars toward their Livonia down payment in this manner.

A Generous Gift

If there is a wealthy family member or friend who is willing to give a portion towards a down payment, take them up on the offer.  Each year a person can receive up to fourteen thousand dollars from their family or friends without needing to pay taxes on the money.  

Job Advancement

A person that has been in their job for a long period of time may have luck with getting a raise.  Do not demand a raise from the boss without having many reasons why it would be beneficial for the business.  Show all of the reasons why the raise would be an investment for the business in a valued employee.

More Work is More Money

If there is just not enough money coming in from one job consider getting a part-time job. While part-time positions are not glorious they can help pay the bills while saving for a down payment.  After enough money is saved give a two-week notice and leave on a good note, just in case work is needed down the road.

Get to Purging

Pack up all of the belongings in the Livonia house that are no longer being used.  Much of the furniture and other décor can be sold. Even clothing and other collectibles can be worth some money.  There are many websites that are great for selling items or have a garage sale if the weather is nice.

Owed Money

There are many savings bonds that are not redeemed in the United States.  Many of these bonds were lost or even completely forgotten by their owners.  Search for those old savings bonds and cash them in for a little additional cash.

Saving for a Livonia down payment can take a lot of time.  Home buyers should start saving long before they try to buy a Livonia house.  The better the down payment is the more buying power a person will have. A higher down payment will also make it much easier to find a lender who will offer a mortgage.