Yesterday my wife and I decided to take the plunge and really get some skin in the game. We bought a house.
Not just any house. One in Hanover Heights, the first neighborhood in Kansas City to get Google Fiber. The idea being we will use this property solely for the Homes for Hackers program, letting startups stay there completely rent and utility-free, for 3 months at a time. This will also be the first home in the program to actually have the sacred fiber I've been promising.
I say "bought" but we haven't got it yet. It's under contract and we're going through the motions of securing financing. Hence the reason for this post.
Since this is not going to be an owner-occupied home, the loan has to be an investment loan. I knew that part. But I had no idea until AFTER I had signed all the legalese that investment loans must have a 20% downpayment. I was really hoping for 10.
Can we swing it? Yeeees... kind of. I'll have to pull out some money that I contributed to a Roth IRA years ago. (Before you ask, you can pull out contributions from Roth's with no penalties, you just can't withdraw investment earnings).
So here's my question: How can I raise $10k for the downpayment so I don't have to withdraw money from my retirement account?
I don't need all of $10k... 5 would probably do it.
Here's some options I've come up with so far:
- Take out a home equity loan.
- Suck it up and withdraw from the Roth IRA.
- Launch a Kickstarter or Neighbor.ly campaign to raise the money. Give away free t-shirts and free stays at the hacker home for various levels of donations.
- Borrow money from family. (unlikely)
- Abandon the contract and forfeit the $1000 earnest deposit.
Thoughts? Please submit any and all ideas here - I need help!
photo credit: EJP Photo via photopin cc