Buying a home is a major milestone in your life. In addition to serving as the place where you likely live for many years, a home will likely be the most valuable asset that you’ll ever own. However, before you can buy a property, you’ll need to come up with a down payment of up to 20% of the final purchase price. Let’s take a closer look at some ways that you can come up with the money for this payment without turning to other people for help.

Take Money Out of a Roth IRA

A Roth IRA is funded with money that has already been taxed. Therefore, you are free to withdraw any contributions that you have made at any time without paying any taxes or penalties. Furthermore, you are allowed to withdraw up to $10,000 of earnings from such an account without paying an early withdrawal penalty to pay for a first home. If you have had your account for at least five years at the time of the withdrawal, there is no need to pay federal income tax on the amount that you take out to pay for your home.

Furthermore, if you are over the age of 59 1/2 at the time a withdrawal is made, you won’t pay any penalties regardless of what the money is used for. If you have had your account for at least five years when this happens, you won’t pay any taxes on that cash regardless of what it is used for.

Borrow Money From a 401(k)

Assuming that your plan allows for loans, you can borrow up to 50% of your current account balance with a maximum loan amount of $50,000. One of the primary benefits of such a loan is that there is no credit check. Furthermore, any of the interest paid on the balance goes right back to your retirement account as opposed to an outside party.

Of course, as procrastination and business finance do not mix, it’s worth noting that the entire loan amount will likely become due the moment you separate from your employer. If you don’t pay the outstanding balance at the time of separation, it may be reclassified as a withdrawal.

This means that it might be subject to income taxes and other penalties. The same may be true regardless of your employment status if you fail to make a quarterly payment on time or otherwise default on the loan.

Create a Dedicated Savings Account

Anyone who has studied the relationship between procrastination and business finance will tell you that it’s easier to get ahead when you plan ahead. If you want to buy a house, you should create an account dedicated to funding your down payment at least six months before applying for a loan. Doing so gives you enough time to create a fund large enough to convince lenders that you’re capable of handling the financial demands of being a homeowner.

Furthermore, giving yourself several months to save for a down payment allows you to do so without causing a financial hardship. In addition to routine weekly deposits, you should consider adding a yearly bonus, income tax refunds or other large windfalls to your down payment savings account.

The prospect of saving thousands of dollars to facilitate a home purchase may seem daunting at first. However, if you have a retirement account, get bonuses on a regular basis or simply start saving soon enough, you’ll find that accumulating funds for a down payment isn’t as difficult as you might think.