- Having a down payment is an important part of buying a home
- Where not to get a down payment for your next home
- Borrowing money for a down payment is like a shell game
- Why we need to beware of government programs that “help” home buyers
- Quote of the lesson from David Henry Thoreau
Having a down payment for your next home is an important thing to do. So much that I spent a chapter in my new book on buying a home, A Tale of Two Houses, talking about it.
But today we are going to be talking about where to NOT get a down payment for your next home. Not all down payments are the same and I would avoid recommending getting a down payment from these sources.
- Roth IRA
- Loan from family
- Home Equity Loan
- Government program
We go through each one and share why I wouldn’t use these sources as a down payment for a home.
Other resources mentioned on today’s show
- Lesson #31-Answering listeners questions on 401(K) loans
- Why taking out a 401(K) loan is a bad idea
- Using Financial Products for what they were intended for
- How to use a retirement account for a down payment on a home (Dough Roller Podcast #206)
Also, join myself and Steve Stewart this Tuesday, April 5th 9:30 PM EST for a Blab session on the Best practices for buying a home.
Today’s quote of the lesson is brought to you by my new book A Tale of Two Houses
“‘I make myself rich by making my wants few” – David Henry Thoreau
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