If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…
Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?
Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.
Just ask some of the folks who passed the perfect home for a few k and regret it.
