| Greetings! This is not Fantasy Land. This is where | | | | employer or face the wrath of the government |
| dream and day unite. This is where you come when | | | | regulators. Yikes! |
| you have given yourself permission to accept that you | | | | You Could Ask for the Help of Non-Profit |
| can own your own home. | | | | Organizations |
| Yes, you've scoured your neighborhood and, as luck | | | | There are non-profit organizations that have programs |
| would have it (for those who take action are favored | | | | for people with low (or even moderate) incomes which |
| by the gods of good luck), you've found some great | | | | are designed to help people buy their own home. |
| places to live. So, you started by putting a number of | | | | These programs work in various ways depending on |
| homes on your shortlist, and now you've narrowed the | | | | the organization. |
| selection down to your three most favorite. And | | | | There are non-profits which have volunteers who |
| now...now the question is: will you actually be able to | | | | rebuild old houses and then get deals for extremely |
| afford one of them? | | | | low (or no) down payments for those who would buy |
| Well, you wouldn't be thinking about this is you were | | | | the renovated house. There are similar programs that |
| independently wealthy and could buy the home | | | | help borrowers who are willing to put in "sweat |
| outright. So, you're going to need to take a mortgage | | | | equity"--they have to help build their own house and/or |
| out, and that means you're going to need a down | | | | build other houses, too. |
| payment, and that means...you need to HAVE a down | | | | But, there are times when you just need to wait. If you |
| payment from some source. Now, you're tired of | | | | are in a situation where you need or desire to have |
| waiting to have your own home, and you do have a | | | | that 20%-or-more cash down payment, here are a |
| really great buy here, and no great buy lasts forever. | | | | couple of other ways to turn: |
| You really need to find that down payment. | | | | Investing in Mutual Funds |
| Now, you know that you want to be able to pay at | | | | These are relatively safe, yet can give you excellent |
| least 20% of the total price of the house as your | | | | returns on your money all the same. Set money aside |
| down payment. This is home loan industry standard. | | | | each month, invest in a good mutual fund found with a |
| You show a good commitment to the house and | | | | financial advisor's help, and then in several years use |
| home ownership, and the lender is confident enough to | | | | the returns to put a down payment on a home of your |
| give you a better interest rate as a result. Yes, it's a | | | | own. |
| win-win situation. | | | | Controlling Your Budget |
| But...what if you haven't been saving your pennies for | | | | Most people spend money that they really don't need |
| this moment? You've had lots of responsibilities, or the | | | | to or even shouldn't. If you can find the way to save |
| sudden desire for the dream home came out of the | | | | an additional $100 to $200 per month or more, every |
| blue, or you (like so many people) really never thought | | | | month, for several years, you could come back and |
| about it in advance. After all, people don't plan to fail: | | | | look at putting a good down payment on a home |
| they fail to plan. | | | | again. Start by writing down every penny--EVERY |
| But...there are a number of ways out of this | | | | penny--that goes out of your wallet or account. Leave |
| predicament. No, giving up on that house of your | | | | not a penny unaccounted for. You can find ways to |
| dreams is NOT one of those ways out! | | | | spend less and save more and still have a good life! |
| Let's take a look... | | | | But, if your heart really is set on buying your own |
| You Can Tap Into Your 401(k) | | | | house NOW, you could always: |
| Yes, you're allowed to take money out of your 401(k) | | | | Get Advice from Your Realtor |
| for a situation like...buying a house. Now, you'll need to | | | | You Realtor has contacts with people who know how |
| pay that money back over a number of years, and | | | | to find the best loans for people who qualify for them. |
| you'll have to pay interest, too. The good news is that | | | | For instance, FHA loans require less than a 5% down |
| this isn't considered another debt against you by | | | | payment but can still get you a good interest rate. You |
| lenders. Unfortunately, you had better stay with your | | | | might qualify. |
| current employer until the loan from the retirement | | | | If you want a home of your own, you need to make |
| account is fully repaid, or else you must pay it all up | | | | things happen. |
| within 90 days of the day you leave your current | | | | |