If you think you can’t afford a house because you don’t have enough for a downpayment, think again.
Coming up with downpayment funds is one of the biggest obstacles keeping people from buying a house. In honor of National Homeownership Month, here are five ways to come up with the money you need to leave renting behind.
Take a class. Financial education can give you the knowledge you need to build wealth and achieve financial goals, but it can also give you access to downpayment funds. Many lender programs require homebuyers to take a course to qualify for funds. Lenders want to make sure you’re prepared for the financial responsibilities of homeownership. HomeFree-USA offers an approved course that will qualify you for downpayment and closing cost assistance. You can come away from the class armed with knowledge and some or all of the downpayment funds you need.
Use your refund. With tax season right behind us you may have received a refund. Before you spend it on a vacation or some other way to reward yourself, consider using it to add to your downpayment fund. Doing so will allow you to enjoy the benefits of that refund for years to come.
Sell your junk. If you’re planning to move into a house, now’s a good time to start getting rid of things you no longer need. One way to do that—and make money to put to your downpayment fund—is to sell your unwanted belongings online. Whether you’re looking to unload furniture or exercise equipment you never use, you can turn to social media sites such as Facebook Marketplace and Next Door to sell your gently used merchandise to your neighbors.
Start a hustle. The gig economy makes it easy for people to make money in their spare time. Whether you’re interested in picking up people’s groceries or walking other people’s pets, there may be a web site platform or service you can turn to in order to make extra money. You can also come up with a side hustle that doesn’t depend on an internet platform. For example, if you love to bake, take orders for pies at work. If you’re great at planning events, get clients to hire you to plan their family reunions. The extra money you make can go toward your downpayment. Cancel subscriptions. Did you know the average person spends nearly $1,000 a year on subscriptions such as streaming services? Consider whether you’re paying for something you rarely use and put that money toward your downpayment instead. Even if you only cut back temporarily until you get into your new home, you may have what you need to end the year in a house of your own.