Your Down Payment

Many people who would like to purchase a new house qualify for several different kinds of mortgages, but they don't have a large sum of cash to put up the standard down payment. Here's where you start

Tighten your belt and save. Look for ways you can reduce your monthly expenditures to set aside funds for a down payment. You could also try enrolling in an automatic savings plan to have a portion of your payroll automatically moved into savings. You might look into some big expenses in your spending history that you can live without, or trim, at least temporarily. For example, you may move into less expensive housing, or stay close to home for your annual vacation.

Work a second job and sell items you do not need. Try to find a second job. This can be exhausting, but the temporary difficulty can provide your down payment money. You can also get creative about the items you can sell. Multiple small things might add up to a fair amount at a garage or tag sale. You might also explore what any investments you hold will sell for.

Borrow money from your retirement plan. Explore the details for your individual plan. Some homebuyers get down payment money from withdrawing from their IRAs or borrowing from 401(k) programs. Make sure you know about any penalties, the effect this could have on your taxes, and repayment obligation.

Ask for assistance from generous members of your family. Many buyers somtimes get down payment assistance from caring parents and other family members who are anxious to help get them in their first home. Your family members may be eager to help you reach the goal of having your first home.

Contact housing finance agencies. Provisional mortgate loan programs are given to buyers in specific situations, like low income buyers or future homeowners planning to improve homes in a targeted area, among others. Working with a housing finance agency, you may get an interest rate that is below market, down payment help and other benefits. These types of agencies may assist you with a reduced rate of interest, get you your down payment, and provide other advantages. The central purpose of non-profit housing finance agencies is to promote the purchase of homes in targeted areas.

Learn about low-down and no-down mortgages.

  • FHA mortgages

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low and moderate-income Americans get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA offers mortgage insurance to private lenders, enabling new homebuyers who may not be eligible for a conventional mortgage, to receive a mortgage. Interest rates for an FHA mortgage normally feature the going interest rate, while the down payment for an FHA loan are below those of conventional loans. Closing costs may be included in the mortgage, and the down payment may be as low as 3 percent of the purchase price.

  • VA mortgage loans

    VA loans are guaranteed by the U.S. Department of Veterans Affairs. Veterens and service people qualify for a VA loan, which usually offers a low rate of interest, no down payment, and minimal closing costs. Although the VA does not issue the mortgage loans, it does certify eligibility to qualify for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. Generally the piggyback loan is for 10 percent of the purchase amount, while the first mortgage covers 80 percent. Rather than the traditional 20 percent down payment, the homebuyer just has to pull together the remaining 10 percent.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow part of the seller's home equity.. The buyer finances the highest percentage of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Generally, this type of second mortgage has higher interest.

No matter how you gather your down payment, the satisfaction of living in your own home will be just as sweet!

Need to talk about the best options for down payments? Give us a call: 305-967-7200.