Your Down Payment

Many buyers qualify for various loan programs, but they don't have a large sum of cash to put up the standard down payment. Below are a few straightforward methods that will help you put together a down payment

Tighten your belt and save. Scrutinize the budget to uncover extra money to save for your down payment. Also, you can look into bank programs in which some of your take-home pay is automatically placed into savings every pay period. You could look into some big expenses in your budget that you can live without, or reduce, at least temporarily. For example, you might decide to move into less expensive housing, or skip a vacation.

Work a second job and sell things you don't need. Try to find a second job. This can be rough, but the temporary trial can provide your down payment money. Additionally, you can make an exhaustive inventory of items you can sell. Unused gold jewelry can bring a good price from local jewelers. You might own desirable items you can put up for sale on an online auction, or quality household goods for a garage or tag sale. Also, you can consider selling any investments you own.

Borrow funds from a retirement plan. Research the details of your particular plan. Some people get down payment money by withdrawing what they need from their IRAs or pulling money out of their 401(k) programs. Make sure you comprehend the tax ramifications, your obligation for repaying funds, and early withdrawal penalties.

Request a generous gift from family. First-time homebuyers somtimes get help with their down payment assistance from gracious family members who may be willing to help get them in their own home. Your family members may be pleased at the chance to help you reach the goal of having your own home.

Research housing finance agencies. Provisional mortgage programs are extended to buyers in specific situations, like low income purchasers or buyers planning to improve houses in a particular place, among others. With the help of this kind of agency, you can get a below market interest rate, down payment help and other incentives. Housing finance agencies can help you with a reduced interest rate, get you your down payment, and offer other advantages. The principal purpose of not-for-profit housing finance agencies is to promote home ownership in certain parts of the city.

Research no-down and low-down mortgage loans.

  • FHA loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in helping low and moderate-income buyers get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who need to qualify for mortgage loans. FHA helps first-time homebuyers and others who would not be able to qualify for a conventional mortgage by themselves, by offering mortgage insurance to private lenders. Interest rates with an FHA mortgage are generally the current interest rate, while the down payment for an FHA mortgage will be below those of conventional loans. Closing costs might be included in the mortgage, while the down payment can be as low as 3% of the total.

  • VA mortgages

    VA loans are backed by the Department of Veterans Affairs. Veterens and service people can receive a VA loan, which generally offers a low fixed interest rate, no down payment, and limited closing costs. While the VA doesn't actually provide the mortgages, it does certify eligibility to apply for a VA loan.

  • Piggy-back loans

    You may fund a down payment through a second mortgage that closes along with the first. Generally the first mortgage covers 80% of the cost of the home and the "piggyback" is for 10%. In contrast to the traditional 20 percent down payment, the buyer will just have to cover the remaining 10 percent.

  • Carry-Back loans

    In the option of the seller "carrying back a second mortgage," the seller loans you part of his or her equity. You would finance the majority of the purchase price with a traditional lender and finance the remaining amount with the seller. Usually this kind of second mortgage will have higher interest.

The feeling of accomplishment will be the same, no matter how you manage to come up with the down payment. Your brand new home will be your reward!

Need to talk about down payments? Call us: 3149139678.

Quick and Easy Pre-Qualication

Fill out the form below, it will take you 2 minutes, for a quick and easy mortgage pre-qualification. I will examine your information for qualified mortgage programs, down payment assistance, and more! You will have answers to you questions plus I will email you an individualized assessment based on the information you provided. I will personally work on this assessment for you, please allow me 1 to 2 business days to complete and respond.

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