Your Down Payment

Lots of buyers qualify for a mortgage loan, but they don't have a lot of money to pay a down payment. We have a few ideas

Slash your budget and build up savings. Look for ways to reduce your monthly expenses to put away money for a down payment. You might also try enrolling in an automatic savings plan at your bank to automatically have a predetermined amount from your take-home pay deposited into savings. You might look into some big expenses in your spending history that you can give up, 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 items you don't need. Try to get an additional job. This can be exhausting, but the temporary difficulty can provide your down payment money. Additionally, you can make an exhaustive inventory of things you may be able to sell. Unworn gold jewelry can bring a good price from local jewelers. Multiple small things may add up to a fair amount at a garage or tag sale. You might also research what any investments you hold could bring if sold.

Tap into your retirement funds. Explore the details for your particular plan. Many homebuyers get down payment money by withdrawing what they need from Individual Retirement Accounts or borrowing from their 401(k) programs. Make sure you are clear about any penalties, the effect this will have on income taxes, and repayment terms.

Ask for assistance from generous family members. First-time homebuyers somtimes receive help with their down payment assistance from gracious family members who may be eager to help get them in their first home. Your family members may be inclined to help you reach the goal of having your own home.

Contact housing finance agencies. These agencies offer special mortgate loan programs to moderate and low income homebuyers, buyers interested in renovating a home within a specific part of the city, and other groups as defined by each agency. Working with this kind of agency, you can receive an interest rate that is below market, down payment assistance and other benefits. These types of agencies can help eligible homebuyers with a lower interest rate, get you your down payment, and provide other advantages. The central goal of not-for-profit housing finance agencies is promoting the purchase of homes in specific parts of the city.

Find out about low-down and no-down mortgage loan programs.

• Federal Housing Administration (FHA) loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low and moderate-income families get mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who need to get home financing. FHA helps first-time buyers and others who might not be eligible for a traditional mortgage loan by themselves, by providing mortgage insurance to lenders. Down payment totals for FHA mortgages are below those of traditional mortgage loans, even though these mortgages have current interest rates. Closing costs may be covered by the mortgage, while your down payment may be as low as 3 percent of the total amount.

• VA loans

  With a guarantee from the Department of Veterans Affairs, a VA loan is offered to veterens and service people. This special loan requires no down payment, has limited closing costs, and offers a competitive rate of interest. While it's true that the mortgages don't originate from the VA, the office verfifies applicants by providing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close along with the first. Most of the time, the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The homebuyer covers the remaining 10%, instead of come up with the usual 20% down payment.

• Carry-Back loans

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

No matter how you gather your down payment money, the satisfaction of owning your own home will be just as great!

Want to discuss the best options for down payments? Give us a call: 3149139678.