SAN DIEGO, May 29, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that strives to empower home loan borrowers with first class information, valuable resources and connections to top rated industry professionals. Their articles offer in-depth knowledge in an easy to understand package which has quickly turned the website into a trusted destination for current news and expert loan advice. Readers can now be assured they are getting the most out of a home purchase with some first time home buyer down payment assistance in Loan Love's newest article titled "Home Loan Down Payment Assistance (Know Your Options)."
The article begins by stating the following: "Pulling together a sizable stash of cash can sometimes stop a prospective homebuyer in his or her tracks. Unless you qualify for certain loan programs that require little money down, you've probably found coming up with your down payment to be the biggest challenge standing between you and home ownership. But there are several avenues to consider for home loan down payment assistance."
Before home buyers get hasty with their decisions however, Loan Love recommends that readers ask a few precautionary questions to see if they are ready for some of the options available for down payment. "Are you able to verify beyond any doubt that the source of your down payment is legal and not a scam? Are you prepared to keep a detailed paper trail of any transactions for both your lender and for tax purposes?" These are just a few of the questions the article proposes to home buyers to ask themselves before taking any risk with certain down payment methods.
The article continues on by listing a few low-risk options that may be available to home buyers for covering the down payment of a home. One method is liquidate assets that are not necessary. Another option provided is to cash in a life insurance policy. Besides these low risk options, the article provides other options home buyers might be able to take advantage of which includes:
- "Ask your lender. No, don't ask your lender for a gift. Discuss whether he or she might reduce their origination fee or fold some of your costs into a monthly payment. This may cost you more in interest, so be sure to weigh the pros and cons before exploring this route.
- Tap your IRA. While withdrawing money from your retirement account is never worth it due to the tax implications, there is an exception on withdrawals from retirement accounts that allow first-time homebuyers to take up to $10,000 from an IRA as a down payment. Avoid simply withdrawing money from your tax-deferred retirement account. The IRS will hit you with a huge penalty and you will have difficulty ever making the amount up again.
- Borrow from your 401(k). Ask your plan administrator to discuss the pros and cons of borrowing the down payment from your 401(k), if you have enough vested funds. He or she can also discuss the process in detail."
To learn more on getting assistance for a home buyer down payment, please visit LoanLove.com for the complete article.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, email@example.com
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