Accumulating the DownPayment (First Time HomeBuyer) - Best way ???

[UPSTATE-NY]

Here's the basic scenario:

Engineering Graduate...living at home...good job (1 year)...good credit...paying my parents "rent"... which I think they are putting in a regular savings account for me...then they plan to give it back to me to help me with the DownPayment once I decide to buy a house.

(Wonderful idea & I appreciate it tremendously !!!)

I think there may be better options to improve this set-up. Hopefully, the experts here can offer a few different ideas on what to do with these dollars; instead of simply Mom & Dads savings account.

Are there savings advantages for 'first time homebuyers' avilable? Special accounts? Put it into my 401K? Their 401K? Deposit to an IRA & withdraw later?

How can I maximize this situation accumulation-wise or tax-wise?

What would you rec'mnd for your own kid ???

Thank you very much !!!

Have a great day, everyone !!!

(are there good websites that I should be reading about this ???)

[drewnick]

My guess is that you'd be better off to ask a financial advisor that a real estate agent.

However, there may be someone who had a similar experience, who would be able to help you.

Drew Nichols

[TJ2007]

Guess the big question is how long are you expecting to save for before you buy?

You have to have to be able to access the money easily without penalty to use it and perhaps to use it to qualify for assets to purchase them home as well...

I recent years most people were better off just jumping on the house ladder wherever they could afford and the appreciation was moving so quickly it was the fastest way to be able to step up to the place they really wanted to buy - but not sure the market is quite so giving right now =)