I can't put any money down: Huh Whaatt!! Talk to your boss he can help....
What has changed since the 1930's and now, one major thing is technology. What has technology played a major impact role in doing is automating and industry that could drastically improve because of this movement is the finance industry. People that work a 9-5 or as I call 8 am until Friday night, have trouble keeping up with all the movement of there finances. One key area of focus happens to be your retirement savings, one that I hate to reflect on, to think of a concept of working 30-40 years and then being able to release the money to yourself at the tender age of let's say over 48 (some folks actually started working at 18) is a concept that hurts me because of the long wait, where is the gain when your physically at your peak usually in your 30's and 40's. I guess a minority of the 1st world has bought into this 32% invested into a 401K plan according to the last U.S. Census Bureau Report. So 200$ bucks a month will get you as follows when you end your career if the stock market does 8% which over time it normally has the ability to do.
So where am I going with this, first telling you to save something but next if you want to get further as I call it CAPITAL GAINS there is a new opportunity in the housing market. Performance wise adding a property to your savings nest egg is another asset that can build upon your portfolio and one that does have a slight disadvantage that comes in the realm of putting money down. See you kinda need money to buy a house while a 401K has been something you don't directly have to have upfront money the two can now merge, see one of the vehicles to bring money to the table for tu casa is the 401K:
Withdrawing From a 401(k)
The first and least advantageous way is to simply withdraw the money outright. This is treated the same as a hardship withdrawal, meaning that you owe the full income tax as if it were any other type of regular income that year. This can be particularly unappealing if you are close to a higher tax bracket, as the withdrawal is simply added on top of the regular income. There's a 10% penalty tax on top of that if you are under 59.5 years of age.
Borrowing From a 401(k)
The second way is to borrow from the 401(k). You can borrow up to $50,000 or half the value of the account, whichever is less, as long as you are using the money for a home purchase. The interest rate for this loan is typically two points over the prime rate. You are effectively paying interest to yourself rather than to the bank.Next thing which is a new to the table for buying a house is the way your employer can support this endeavour that's right outside of your 401K your employer can help without you filing paperwork to your 401K administrator:
This new group program came from an organization called HomeFundMe a crowdfunding source approved by Fannie and Freddie what they do is allow for your employer to donate to your home, this was all started by CMG Financial as employers needed a vehicle to support the retaining of talent.
Here are some other resources you need to keep handy as you move into your home purchase:
http://www.nhfloan.org - Websites keeps you up to date with all the latest programs for down payment assistance
https://downpaymentresource.com - Sometimes your mortgage lender has a lot on their plate check out this mortgage assistance website
These are just some of the programs that you can use for assistance, search the net and make it happen.
Last but not least you can borrow but not too much that means Family and Friends can give here are some of the requirements around that:
- If you put down 20% or more, it can all be from a gift.
- If you put down less than 20%, part of the money can be a gift, but part must come from your own funds. This minimum contribution varies by loan type.
- You can only use gift money on primary residences and second homes.
- All of your down payment can be gift money.
- If your credit score is between 580 and 619, at least 3.5% of your down payment must be your own money.
- You can only use gift money on primary residences.