The Condo Mania Team
4 Ways to Save for a Condo Downpayment
You're probably wondering why we have a photo of a kitchen in a condo in an article about how to get a downpayment for a condo. It's aspirational! We all need a good reason to make a few changes for something we want. By the way, the condo kitchen you see is from the model at Tempe's Rhythm community.
After dropping your debt and saving an emergency fund, it's time to tackle the next hurdle for first time homebuyers - that is the DOWNPAYMENT.
Lenders have loosened up a bit these days and now have loans available for first time homebuyers that require only a 3% downpayment. So for a $200,000 condo purchase, that's $6000.
So where can you come up with a downpayment if you don't have one yet? Here are some suggestions:
Live Below Your Means for a While
It's tempting to live in a shiny luxury apartment while you save for a downpayment, but dropping your monthly rent by $200 per month either by living in an older apartment or in something smaller will give you the $6000 downpayment in 2.5 years. Cut some corners elsewhere and that time can shrink further.
Get Downpayment assistance
The Home in 5 downpayment assistance program is available for lower income buyers in Maricopa County and gives 3% downpayment assistance. First responders, teachers and the military get additional funds.
Make more money
It's all about the side hustle for millenials these days, with plenty of opportunities to earn more outside of your regular job. With websites like upwork.com, you can work in your pajamas!
Raid the IRA
Though most financial experts would have a fit at this suggestion, it is possible for first time homebuyers to use IRA funds for a downpayment, without paying any early withdrawal penalties. You'll still have to pay taxes on any amounts you withdraw on a regular IRA.
Want to find out how much you can afford when you're ready to buy? Check out this article on How Much Can you Afford ?
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Last Updated: 2022-08-16 06:07:08