{"id":2021,"date":"2022-02-09T11:00:00","date_gmt":"2022-02-09T16:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2021"},"modified":"2024-04-25T23:19:21","modified_gmt":"2024-04-26T03:19:21","slug":"5-ways-to-clear-the-down-payment-hurdle","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/5-ways-to-clear-the-down-payment-hurdle\/","title":{"rendered":"5 Ways to Clear the Down Payment Hurdle"},"content":{"rendered":"\n
\"Athlete<\/figure><\/div>\n\n\n\n

The median down payment on a house now tops $27K<\/a>, the National Association of REALTORS\u00ae has announced. The bar has been raised. In late 2020, it stood at $20K.<\/p>\n\n\n\n

In fact, six-figure down payments aren\u2019t unusual, if you\u2019re looking in and around popular coastal cities. Outside the San Jos\u00e9 tech hub, the median down payment on a home or condo is an absolute monster at $336,700. In the Bay Area, it\u2019s $253,000. In the L.A. and Long Beach markets it\u2019s a comparably modest $166,500. Down payments in greater Ventura, Santa Rosa and San Diego are all above $100K. Other key areas where 100K+ is the norm are Boulder, Colorado; Stamford and Norwalk, Connecticut; Greater Seattle; and Boston.<\/p>\n\n\n\n\n\n\n\n

Why even try to buy at this point, you ask? Compare the options.<\/h2>\n\n\n\n

Tough as it is to buy today, there are still good reasons to do it. A typical home buyer builds equity at a (not guaranteed, of course) rate of 7% a year, through real estate appreciation. Plus, buyers save value for themselves rather than giving it to another property owner in the form of rent.<\/p>\n\n\n\n

Rents are running extremely high<\/a> in many areas of the country. If you are renting, consider the opportunity cost of continuing to make these payments \u2014 if you could instead be building equity in your own real estate asset.<\/p>\n\n\n\n

Now, for plenty of people, renting is actually the best option. Some want the flexibility of a rental situation \u2014 for example, so they can easily move. But many would prefer to own. And the longer they put it off, the more interest rates will likely keep climbing<\/a> from their pandemic-year lows.<\/p>\n\n\n\n

The biggest hurdle for most buyers involves getting the funds together for a down payment. Even if it seems impossible, one or more of the following ideas could be worth some thought.<\/p>\n\n\n\n

Don\u2019t have heaps of cash in a savings account? Consider these workarounds.<\/h2>\n\n\n\n
\"Person<\/figure><\/div>\n\n\n\n

Maybe you can\u2019t turn to anyone close to you for a gift to help with your down payment<\/a>. Of course, you can sell your car, gold rings, and other valuables using today\u2019s online platforms. But maybe you need to keep the car, and don\u2019t have enough marketable items to come up with the cash necessary in this real estate market. If that\u2019s the case, there are several creative ways of creating buying power and getting started on your real estate adventure.<\/p>\n\n\n\n

Depending on your situation and risk tolerance, here are five possible alternatives:<\/p>\n\n\n\n