Five Ways to Find Cash for a Million-Dollar Home Purchase

The housing market in Orange County and Southern California is booming, with the median home price reaching $1 million or more in 127 ZIP codes. For those looking to buy a million-dollar home but lacking the cash on hand, there are several ways to make it happen.

One option is to secure a mortgage with a low down payment. For example, veterans and active military personnel with full eligibility can qualify for zero down payment loans. For others, a Federal Housing Administration loan with a 3.5% down payment or a conventional loan with 5-10% down payment can help make homeownership a reality.

Self-employed individuals may have the option to use their business bank statements instead of tax returns to qualify for a mortgage. Additionally, tapping into savings, gift funds, or other assets like life insurance policies or inheritance can provide the necessary funds for a down payment.

Adjustable-rate mortgages can also be a more affordable option for buying a million-dollar home. With various loan options available, it’s important to consider factors like interest rates, monthly payments, and income qualifications when choosing a mortgage.

While owning a home comes with tax benefits such as deducting property taxes and mortgage interest, it’s essential to understand the limitations and requirements for these deductions. Overall, with careful planning and the right financial strategy, buying a million-dollar home is within reach for many prospective homeowners in Southern California.