Your Down Payment

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

Cut expenses and save. Look for ways you can trim your expenditures to set aside funds for a down payment. You also could enroll in an automatic savings plan at your bank to automatically have a set portion of your paycheck transferred into savings. Some effective strategies to save additional funds include moving into a residence that is less expensive, and skipping a year's vacation.

Work more and sell items you don't need. Try to get a second job. This can be rough, but the temporary trial can provide your down payment money. Additionally, you can put together a comprehensive inventory of items you may be able to sell. Unused gold jewelry can be sold at local jewelry stores. Maybe you own desirable items you can put up for sale at an online auction, or household goods for a garage or tag sale. You can also look into what any investments you hold will sell for.

Borrow from your retirement plan. Check the provisions of your specific program. Some homebuyers get down payment money from withdrawing from IRAs or getting money out of 401(k) plans. Be sure you know about any penalties, the effect this will have on your taxes, and repayment obligation.

Ask for assistance from generous family members. Many buyers are often lucky enough to receive help with their down payment assistance from giving parents and other family members who are prepared to help get them in their own home. Your family members may be eager to help you reach the goal of buying your own home.

Contact housing finance agencies. Provisional mortgate loan programs are given to buyers in specific situations, like low income purchasers or people looking to renovating houses in a specific area, among others. Financing with a housing finance agency, you probably will get an interest rate that is below market, down payment help and other benefits. Housing finance agencies may help you with a reduced rate of interest, get you your down payment, and offer other assistance. These non-profit agencies exist to promote the value of homes in certain 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 role in assisting low and moderate-income buyers qualify for mortgage loans. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who wish to get home financing. FHA helps first-time homebuyers and others who may not be eligible for a conventional mortgage on their own, by offering mortgage insurance to the private lenders. Interest rates for an FHA loan normally feature the market interest rate, but the down payment with an FHA mortgage will be smaller than those of conventional loans. Closing costs can be financed within the mortgage, and your down payment could be as low as 3% of the purchase price.

• VA mortgages

  With a guarantee from the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This particular loan does not require a down payment, has limited closing costs, and provides the benefit of a competitive interest rate. Although the VA does not provide the mortgages, it does certify eligibility to apply for a VA mortgage.

• Piggy-back loans

  A piggy-back loan is a second mortgage that closes with the first. In most cases the first mortgage covers 80% of the cost of the home and the "piggyback" is for 10%. Rather than the traditional 20 percent down payment, the buyer just has to cover the remaining 10 percent.

• Carry-Back loans

  With a carry-back mortgage, the you borrow a portion of the seller's home equity.. You would borrow the largest portion of the purchase price from a traditional mortgage lending institution and finance the remaining amount with the seller. Typically you will pay a slightly higher interest rate with the loan from the seller.

No matter your strategy of getting together your down payment, the thrill of living in your own home will be just as great!

Need to talk about down payments? Call us at 305-967-7200.