November 25, 2020

How to raise funds to help with your down payment

One of the biggest conversations that we have when we talk to people about buying a home is: "What is the source of your down payment?"

It doesn't always take a 20% down payment, but what we're talking about today is: Where do we get those funds?

You may save it up in your checking or savings account, you may pull money from a retirement account. Did you know, however, that you can actually sell an asset to raise funds for your down payment?

This could be something like: An extra car you have laying around, a gun collection, gold coins or other kinds of relics, or maybe even a baseball card collection.

There's lots of different potential options, but here's where things get tricky.

We have to thoroughly document the entire process. We have to know that you actually owned that asset that you're selling in the first place, and we have to get a fair market value by an independent third party for that asset.

Then, when it comes to the actual transaction, we need:

  • A bill of sale
  • A copy of the check
  • A copy of the deposit slip showing your deposit
  • A bank statement showing that the money has been deposited into your account.

The whole process can get complicated, but it doesn't need to be. If you're thinking about selling an asset to raise funds for a down payment, give us a call first. We'll guide you through it, we'll make sure we hit all the proper steps before you go do it. Give us a call, we're here to help.

Watch our video on this topic here.