Conventional wisdom suggests paying 20% of a home’s purchase price in cash upfront – known as the down payment. Your mortgage finances the remaining 80% of the purchase price. And while 20% might not seem like a lot of money if you’re buying a new car, it’s definitely a large amount to come out of your bank account at once: $50,000 for a home priced at $250,000, $70,000 for a house that sells for $350,000, and a full $100,000 if you buy a $500,000 property.
Many of us don’t have that amount saved in our invested retirement accounts, much less sitting around in a savings account in cash. So how will you get enough money for a down payment on that home for sale?