The housing market remains fairly flat right now - good news if you're looking to buy. The one thing you will need if you are a buyer - a down payment.
It's not easy setting money aside if you are trying to save for a down payment on your own home or condo.
"One of the best ways if you're new into the market is possibly going out and getting a second job. Even though you may be working a full time job, a second job you can use all that money to put away and it will help you acquire a large down payment," said Gay McPhail of Central Pacific Bank homeloans.
There are also government programs like the VA loan program that will assist you - but you must be a veteran.
"The other option is FHA. They usually allow a smaller down payment. The only thing is that in this mortgage market environment, there's a lot of mortgage requirements that go along with that. The other thing is USDA which is rural areas - usually that's Kapolei, Waimanalo, there's certain specific areas that allow that. You can do a hundred percent financing," McPhail said.
Those kinds of loans are rare. If you have a 401k, there are instances where you withdraw money for a down payment and the tax penalty will not be severe.
"I think absolutely for a first time buyer you can go - usually the federal government will allow you to borrow ten thousand dollars without penalty. So even if you're not of the age where you can withdraw, you can borrow ten thousand dollars. You might have to pay tax on that ten thousand dollars, but you won't have the penalty," McPhail said.
Another option for new home buyers is to talk with their parents about a "gift" for a down payment - and they may be willing to take out an equity loan on their home to help you out.
Finally, McPhail suggests just cut back on spending.
"You know, we're all in a spending environment here. You don't need to upgrade all your ipods, certain things like that. So if you don't spend - - what you don't need - - put that away, your down payment will grow," she says.
