Coming up with a big pile of cash can seem impossible. Now that the banks have shriveled up and only help out people with tons of money to start with, how can you get ahead?
Well, to help you out I came up with 9 stupidly simple ways to get a down payment for your Manufactured home.
1. Stop Spending Money on Things You Don’t Need.
I don’t know about you, but I know people who spend so much money on absolutely nothing. Fast food, chocolate, DVDs that they never watch. You name it, people waste money on it. Have you ever decided that enough is enough?
Think about it. Do you REALLY need that Starbucks each morning or could you wake up five minutes earlier and make your own coffee? If you save money by cutting out just half of the unnecessary things you buy, you’ll have a good start to your savings after the first year.
2. Sell the Stuff You’ve Already Spent Money On.
In 2006, a friend of mine decided that she was going to get healthier. She bought exercise DVDs, weights, a stationary bike, and a treadmill. The weights haven’t been touched since 2010. The DVDs are rarely used. The stationary bike was put together. I think she even sat on it once. The treadmill? It never even made it out of the packaging. So she’s decided that she’s going to sell it to the next enthusiast on a healthy kick.
What’s laying around you house? TVs you never watch? Stereos you don’t listen to anymore? Sell off things you don’t use and put the money right into your savings account.
3. No Days Off.
Back in the 90s I toyed around with the idea of a second job. Ultimately, I decided not to get one. I can handle the lack of days off, but my on-call job meant I’d also be handling a lack of any sleep at all, which is not healthy. Maybe your situation is different than mine was back then. Can you afford the time to work two weeks a month or two or three nights a week? If so, get a second job and have the paychecks sent directly to your savings account.
4. Ask your mom and dad.
We get it in our heads that, as adults, we shouldn’t be asking our parents for money, especially money we don’t intend to pay back, but keep this in mind: your parents want us to succeed. If anybody in your family can gift you money to go toward the purchase of your manufactured home, talk to them about it. They will especially be willing if you are just starting out or getting married. You can even attach a bond to it, and give them half the property.
You will need documentation proving the money is a gift that does not need to be paid back. Keep in mind that anything over $13,000 from one gifter will be subject to taxes, though.
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5. Contact the Federal Housing Administration.
Sometimes, no matter how hard you try, saving the money yourself isn’t an option. In cases like this, you may be eligible for a mortgage loan, like the ones provided by the Federal Housing Administration (FHA). The FHA offers loans that come from private lenders whom are backed by the FHA in case you do default (stop paying) on your mortgage loan. FHA loans may require you to put as little as 3.5% of your own money down, but your credit and income, and the size of the mortgage will be taken into consideration.
6. Check into State Programs.
Some state housing finance agencies offer you help with down payments, though the terms vary by state. State agencies offer grants, subsidized loans, and several other options. Recipients have to meet income, credit, and other requirements.
7. Take Advantage of Your Veteran Status.
If you are on active duty in the military or are a Veteran, the Veterans Administration has housing options for you. The most popular option is the mortgage loan that requires absolutely nothing as a down payment. This would be perfect for me. Too bad I’m not a Veteran. If you are, you can get a great loan with a great interest rate if you meet the right income and credit requirements.
The Department of Veteran Affairs is a bit more lax on the credit rating than other organizations, but if you have bad credit, you’ll pay a higher interest rate.
8. Remember That 401(k) You Paid Into?
I don’t have a 401(k), so that option’s out for me, but it might be one for you. If you can prove financial hardship, you can receive up to half of your 401(k) money as long as it isn’t more than $50,000. Be sure that you’ve checked out the first seven ideas before taking out of your retirement, though. It will be hard to enjoy your retirement if you’re too poor to actually retire.
9. What About the IRA?
If you don’t have a 401(k), you might have an IRA account. Like the 401(k), the IRA account is retirement, so use it as a last resort. Using an IRA for a down payment on a home might even get you out of paying the early withdrawal penalty, but it has a limit of only $10,000.
See? Those ways to get a down payment for your manufactured home really are stupidly simple, right? I’ve even done the research for you, so you have no excuse not to follow through. Good luck and happy hunting!