Is Saving for a Down Payment Worth It? Here’s Why the Hard Work Pays Off

Coming up with the money to buy a home is tricky. Here are some avenues to explore. PennyGem’s Johana Restrepo has more.

Transcript

00:00coming up with the money to buy a home is tricky although this may not be an option for everyone

00:09some people may be able to withdraw up to ten thousand dollars from a roth ira account free

00:15of taxes and penalties to purchase a home according to cnbc you can withdraw direct

00:21contributions because you already pay taxes on this but the same can't be said for any growth

00:27on your account you'll be charged a 10 penalty for withdrawing money unless you reach the age of

00:3359 and a half and have owned a roth ira account for at least five years vestopedia recommends looking

00:41into first-time buyer offers which also apply to people who haven't owned a home in three years or

00:47only owned a house with a spouse you can also tap into down payment assistance programs like the

00:53federal housing administration which offers loans to low to moderate income borrowers

00:59if you're still coming up short it may be time to downsize a bit sell some belongings or even speak

01:05to family who can give you monetary gifts for birthdays and christmas to help you save for that

01:11down payment