Q: I would like to purchase a home and have very little available cash. Do you know of some creative ways to come up with a down payment?
A: That is a great question and I am pleased to tell you that there are many down payment sources that you may not have thought of. Gift funds are a source that is often used. These funds must be gifted from a relative or domestic partner and can be used for settlement costs as well as for the down payment. You can also access funds for a home purchase from the cash value of a life insurance policy when the borrower is the policy holder. Borrowed funds that are secured by an asset or from a 401K or IRA are also acceptable. Another way to generate funds for a purchase is through the documented sale of an asset such as a car, jewelry, or coins. Monies from an inheritance, savings bonds, stock and mutual funds are also considered good down payment sources. While assets from the more traditional depository accounts such as checking, savings, and money market accounts are always welcomed; Directors Mortgage is ready to creatively look at all down payment options and we look forward to the opportunity to make the dream of home ownership a reality.