Your Down Payment

Many buyers can easily qualify for several different kinds of mortgages, but they don't have a lot of money to pay the standard down payment. Here are a few straightforward methods that will help you get together a down payment

Slash the budget and build up savings. Be on the look-out for ways to trim your expenses to put away money for a down payment. You might also try enrolling in an automatic savings plan to have a percentage of your pay automatically deposited into a savings account. You could look into some big expenses in your spending history that you can do without, or reduce, at least temporarily. Here are a couple of examples: you might decide to move into less expensive housing, or stay close to home for your family vacation.

Work more and sell items you do not need. Perhaps you can find an additional job to get your down payment money. In addition, you can put together an exhaustive list of things you may be able to sell. Unworn gold jewelry can be sold at local jewelers. Maybe you own collectibles you can sell on an online auction, or household items for a garage or tag sale. Also, you can think about selling any investments you hold.

Borrow money from your retirement plan. Research the specifics of your particular plan. You can borrow funds from a 401(k) for you down payment or perform a withdrawal from an Individual Retirement Account. Make sure you understand about any penalties, the effect this may have on your income taxes, and repayment obligation.

Ask for assistance from members of your family. Many homebuyers are often fortunate enough to receive help with their down payment help from thoughtful parents and other family members who are prepared to help get them in their first home. Your family members may be happy at the chance to help you reach the milestone of owning your first home.

Learn about housing finance agencies. These types of agencies offer special mortgate loan programs to moderate and low income borrowers, buyers with an interest in rehabilitating a residence in a specific area, and other groups as defined by each agency. Working with a housing finance agency, you may receive a below market interest rate, down payment assistance and other benefits. These kinds of agencies may assist you with a lower interest rate, help with your down payment, and provide other advantages. These non-profit agencies were formed to boost community in certain places.

Research no-down and low-down mortgages.

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays a critical role in aiding low to moderate-income Americans get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA offers mortgage insurance to private lenders, helping the buyers to become eligible for a mortgage. Down payment amounts for FHA mortgages are smaller than those for typical mortgages, although these loans come with average rates of interest. The required down payment may go as low as 3 percent and the closing costs could be packaged in the mortgage.

  • VA mortgages

    Guaranteed by the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This particular loan requires no down payment, has limited closing costs, and provides a competitive rate of interest. Even though the mortgages don't originate from the VA, the office certifies borrowers by providing eligibility certificates.

  • Piggy-back loans

    You can finance your down payment with a second mortgage that closes with the first. Most of the time, the first mortgage covers 80% of the purchase amount and the "piggyback" funds 10%. In contrast to the traditional 20 percent down payment, the buyer just has to cover the remaining 10 percent.

  • Carry-Back loans

    In a "carry back" mortgage, the seller agrees to loan you part of his own equity to help you get your down payment money. The buyer funds most of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Typically you will pay a somewhat higher interest rate with the loan financed by the seller.

The feeling of accomplishment will be the same, no matter how you manage to put together the down payment. Your new home will be well worth it!

Want to discuss the best options for 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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