What To Do When You Want to Buy a House But Have No Savings for a Down Payment
It's time to get creative. When all else fails, you have to think outside the box a little bit, and that's exactly what we're seeing people do. Millennials are turning to some nonconventional ways in order to get that down payment.
Crowdfunding. Recent research shows that many couples are now asking their wedding guests to contribute to their "down payment fund" instead of a traditional registration. Why? Many of those getting married have tens of thousands of dollars in student loans and have trouble saving enough money to put down for a home. Another reason is they likely already live with their partner, meaning they don't have as much of a need for the normal wedding gifts. They just need the actual home! Websites like HomeFundMe allow your friends and family (or even strangers) to put money towards your cause in owning a home. There are zero transaction fees involved and its not only easy to share on social media, but easy to learn more about the mortgage process. Find out more about HomeFundMe here.
Short Term Rentals. Loftium is another company that helps out in situations like these. Loftium will help pay for a down payment in exchange for a future cut of Airbnb proceeds. They will even help you manage your listing. Find out more of what they do here.
Equity Sharing. Unison is a company that will offer to split the cost of a down payment with you in exchange for a share in the equity of the home. In addition, Unison can help lower your monthly mortgage payment and eliminate PMI. Find out more about their program here.
Rent to Own. Divvy puts a spin on the rent-to-own game. Divvy buys the home you want and leases it back to you. Unlike most lease programs, every monthly payment goes towards your future home equity. Once you lease the home with Divvy for 3 years, you can buy it back from them with a 10% down payment on them! Check it out here.
There are so many options out there when it comes to getting a down payment for your home. Don't be afraid to explore!
What do you think? Would you do this?