No one said that saving for a down payment for a home would be easy. Now more than ever having the discipline to save is quite challenging. Part of the reason for this is banks are requiring a higher down payment on a house. Gone are the days of “zero down” on a home.
According to the National Association of Realtors, 27% of first-time homebuyers in 2010 used gifted money from friends and family to make their down payment, and about 60% of homebuyers were married couples. A company out of New York called Deposit a Gift has set up about 6,500 gift registries, and 30% of them have it set up for gifts to be split evenly between down-payment funds and home-improvement funds. The company was launched in 2009. Couples are not too crazy about gravy boats and expensive dishes anymore – they want cash for their home.
The down-payment registry also makes it less awkward for guests to just give a gift of money. Couples are uploading pictures of their dream home on blog sites so their friends and family can see where their gifts of money will be going. Conducting a quick search online can help you find a nice selection of registries. Look through a lot of them because they have different features. Some have a directory of wedding vendors, and even discounts if you use their featured vendors.
Understand however that your entire down payment can’t come from the gifts. Typically the couple will still have put down 5% of the money from their savings. The rules vary depending on what kind of loan they decide on.
We are real estate agents and experts on Erath County. If you would like to learn more about buying or selling a home here we would love to help. Please contact us today!