In some parts of the country, the good old days of higher real estate prices is back with a vengeance. With such low home mortgage rates like we have today, bidding wars are starting to emerge in some real estate markets. The problem is how to come up with a downpayment for a house if you’re cash poor.

Lenders have learned from their past mistakes that helped create the last housing bubble. It’s now close to impossible to get your new home with no money down.

So if you have decent credit, you’ll be needing a sizeable down payment for that house you like to call your own.

While you can get a good home loan with just 3% to 10% downpayment, the best real estate mortgage for first time home buyers can be obtained with at least 20% or more down.

With enough downpayment, you’ll not be required to carry private mortgage insurance for conventional loans, or mortgage insurance for FHA insured home loans.

Additional Sources of Down Payment for a House

Here are the best ways to raise the extra funds you need for a downpayment. The options presented for increasing your downpayment is doable, provided you take positive action to get started today.

Try To Institute a Savings Plan

You need to take time and analyze your current budget. If you truly want to accumulate additional funds towards your downpayment, your spending has to be curtailed.

What about if you only spend 80% of your current spending pattern. I bet you’ll survive, but with more funds available towards your real estate purchase.

Setting up a savings plan with a fixed percentage is a good way to accumulate the extra funds you need for down payment for a house.

You can even name the savings, your real estate funds account. Direct deposit a fixed amount every paycheck, and don’t conduct any withdrawal until you’re ready to buy your house.

State Downpayment Programs

In some states, many programs exist to help first time home buyers with their real estate purchase.

The names for such programs can vary based on your location. Sometimes it’s called homestead assistance, revitalization funds, or just downpayment assistance funds.

Most large states have some kind of a program to help first time home buyers with additional downpayment to make their real estate dream a reality.

Ask the Seller

You might be able to have more money for your downpayment if you just ask the seller to pay some of your closing cost.

Depending on the size of the deal, most sellers would gladly give the buyer some credit towards closing cost. I have seen sellers agree to pay the buyer’s entire closing cost.

Be very careful, as some mortgage bankers hate to see you get your new home with not enough money from your own pocket.

While some loan officers could care less how the deal is consummated as long as the credit factors are in place.

The opposition from your mortgage banker would depend on the amount of downpayment assistance we’re talking about.

Ask The Real Estate Broker

Real estate agents and brokers make out like bandits, in any real estate purchase deal.

In some states, both the buyer and seller can have real estate agents collecting fat commissions for just marketing and selling the house.

You can ask for some assistance from the real estate broker involved in the deal.

In a down housing market, you’ll find many willing participants. Most agents would rather take home less commission instead of nothing at all.

Just Ask Your Parents

The people that love you the most, are most likely to come to your aid with downpayment assistance.

If you have shown that you’re responsible with money, parents and grandparents can be your best source of securing enough funds to make your real estate purchase a reality.

Hopefully, you’re not the kid that only visits when you want something. Older folks are willing to help you, provided you’ve shown yourself to be a caring and loving person.

Be aware that large amount as a gift can bring the tax man asking for their share. I believe you can receive up to $13,000 as gift from your parents, without facing any tax issues.

You Can Tap Your IRA

Based on the latest IRA regulations, individuals below the age of 59½ and without any real estate purchase in their name within the last two years, can withdraw up to $10,000 without incurring any penalty.

The funds withdrawn can be used for purchase of real estate. Please only use your retirement savings after you have exhausted all other options.

You Can Use Funds From Your 401(k)

The rules to get money from your own 401(k), can be daunting to say the least.

First you have to demonstrate a hardship that necessitates the need for the funds.

The funds will be given to you as a loan that needs to be paid back into the 401(k).

In most cases, you’re allowed to borrow about half of your 401(k) accumulated amount, but not to exceed $50,000. Please, this should only be used as a last resort.

You Can Sell Some of Your Assets

Believe it or not, your best source for additional downpayment can be right in front of you. If you own two cars, you should consider selling one to raise the funds you need.

Just look around your home and determine what you can do without, for which someone would pay for the privilege of owning.

It baffles the mind the amount of stuff we accumulate over a period of time.

You should seriously consider selling some of your possessions, to raise part of the funds you need towards your downpayment for a new home.

Make Better Use of Your Time

If you only work 40 hours a week, you should seriously consider getting another job.

Your time is your most valuable possession and should be treated as such.

Spending your time keeping up with the “Kardashians” will only make you poorer in the long run.

Start treating your time as a valuable resource, and find other ways to get paid.

Your desire to own real estate you can call home is possible, by implementing some of the methods of getting additional downpayment listed above.

Try to institute a more rigid savings plan to accumulate the funds you need. You can ask your parents or grand parents to help you out with some funds.

While it’s possible to tap your IRA and 401(k), those options should only be used as a last resort.

To get additional funds real fast, try getting another job. Your time is your most prized possession and you should stop wasting it on watching shows, and doing other mundane activities.