Your Down Payment

Many buyers can qualify for a loan, but they can't afford a large down payment. Do you want to look into getting a new home, but don't know how to put together a down payment?

Tighten your belt and save. Scrutinize the budget to discover extra money to go toward your down payment. There are bank programs in which a specific portion of your take-home pay is automatically deposited into savings each pay period. Some effective methods to save additional funds include moving into housing that is less expensive, and staying local for your vacation for a year or two.

Work more and sell items you don't need. Maybe you can get an additional job and save your earnings. In addition, you can put together a comprehensive inventory of things you may be able to sell. Broken gold jewelry can be sold at local jewelry stores. A closetful of small things might add up to a fair amount at a garage or tag sale. Also, you can consider selling any investments you own.

Borrow your down payment from your retirement plan. Explore the specifics of your particular plan. Some homebuyers get down payment money by withdrawing what they need from Individual Retirement Accounts or borrowing from 401(k) programs. Make sure you comprehend the tax ramifications, your obligation for repayment, and early withdrawal penalties.

Ask for assistance from members of your family. Many buyers are often fortunate enough to get down payment help from gracious parents and other family members who are anxious to help them get into their own home. Your family members may be willing to help you reach the goal of having your first home.

Learn about housing finance agencies. These agencies provide provisional mortgage loans to low and moderate-income borrowers, buyers interested in remodeling a house in a particular part of the city, and other groups as defined by each finance agency. Financing with a housing finance agency, you can get an interest rate that is below market, down payment help and other advantages. Housing finance agencies can assist you with a reduced interest rate, help with your down payment, and offer other assistance. The principal goal of not-for-profit housing finance agencies is to boost home ownership in targeted parts of the city.

Find out about low-down and no-down mortgage loans.

  • FHA mortgages

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low and moderate-income families get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals who wish to get mortgages. FHA assists first-time homebuyers and others who might not be able to qualify for a conventional mortgage loan by themselves, by offering mortgage insurance to lenders. Down payment sums for FHA mortgages are lower than those of typical mortgages, even though these loans come with average rates of interest. Closing costs can be included in the mortgage, and your down payment might be as low as 3% of the purchase price.

  • VA mortgage loans

    Guaranteed by the Department of Veterans Affairs, a VA loan is offered to service people and veterans. This special loan requires no down payment, has mimimal closing costs, and provides the benefit of a competitive interest rate. Although the mortgages aren't actually provided by the VA, the department certifies borrowers by issuing eligibility certificates.

  • Piggy-back loans

    You can fund your down payment through a second mortgage that closes along with the first. In most cases the first mortgage covers 80% of the purchase price and the "piggyback" funds 10%. The borrower pays the remaining 10%, rather than needing to put together the typical 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow a portion of the seller's home equity.. The buyer finances most of the purchase price with a traditional mortgage program and borrows the remaining funds from the seller. Usually you'll pay a slightly higher interest rate on the loan financed by the seller.

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

Need to talk about the best options for down payments? Give us a call: 425-508-9988.

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