Here's How to Come Up With a Home Down Payment
Coming up with the money to buy a home is tricky. Here are some avenues to explore. PennyGem’s Johana Restrepo has more
Category
📚
LearningTranscript
00:00Coming up with the money to buy a home is tricky.
00:07Although this may not be an option for everyone, some people may be able to withdraw up to
00:12$10,000 from a Roth IRA account free of taxes and penalties to purchase a home.
00:18According to CNBC, you can withdraw direct contributions because you already paid taxes
00:24on this, but the same can't be said for any growth on your account.
00:29You'll be charged a 10% penalty for withdrawing money unless you reach the age of 59 and a
00:34half and have owned a Roth IRA account for at least five years.
00:39Vestopedia recommends looking into first-time buyer offers, which also apply to people who
00:45haven't owned a home in three years or only owned a house with a spouse.
00:50You can also tap into down payment assistance programs like the Federal Housing Administration,
00:56which offers loans to low to moderate income borrowers.
00:59If you're still coming up short, it may be time to downsize a bit, sell some belongings,
01:05or even speak to family who can give you monetary gifts for birthdays and Christmas to help
01:10you save for that down payment.