Down Payments

A new house is a major investment. Even if you have a mortgage, the bank and the seller will still expect a sizeable down payment. That's why lots of people regularly gift down payments to friends and relatives - it's a great way to help young people start out on the path of home ownership. But what are the rules around gifting down payments? Can you simply give someone everything they need? Although it's a generous thought, it's not always possible - here's what you need to know. Make Sure You Write a Gift Letter If you're giving one of…

If you’re looking for a new home, you’ve probably heard lots of advice about down payments. About how it’s okay to just have a five percent down payment – you’ll still get approved. About how you should make the down payment as small as possible to avoid cash flow problems. In truth, you’re actually better off making the largest down payment you can possibly afford. Even if you have to slice up other areas of your budget, save for a few more years before you buy, or take a second job on the weekends, it’ll be worth it in the…

One of the most significant challenges that many people face when preparing to buy a first home relates to saving money for a down payment. While there are many different loan programs with varying down payment requirements, the fact is that it can still be difficult to save up a large sum of money. Some programs may require you to save as much as 10 percent or 20 percent of the sales price of the home. You can employ a few different tips and techniques to save money for a down payment more quickly, and these are some of the…