Your Down Payment

Lots of borrowers can easily qualify for several different kinds of mortgages, but they can't afford a large down payment. Want to buy a new house, but don't know how you should get together a down payment?

Tighten your belt and save. Be on the look-out for ways to reduce your expenses to save toward a down payment. Also, you can look into bank programs in which a specific portion of your take-home pay is automatically transferred into a savings account each pay period. Some effective methods to save additional funds include moving into less expensive housing, and skipping a year's vacation.

Work more and sell things you don't need. Look for an additional job. This can be rough, but the temporary difficulty can provide your down payment money. Additionally, you can make an exhaustive list of items you can sell. Unused gold jewelry can be sold at local jewelers. Maybe you own desirable items you can put up for sale at an auction website, or household items for a tag or garage sale. Also, you can consider selling any investments you own.

Borrow from retirement funds. Research the specifics of your individual plan. You may pull out funds from a 401(k) plan for you down payment or withdraw from an Individual Retirement Account. Be sure you comprehend the tax ramifications, repayment terms, and any early withdrawal penalties.

Ask for a generous gift from your family. Many buyers are sometimes lucky enough to receive down payment help from gracious family members who may be able to help them get into their first home. Your family members may be happy at the chance to help you reach the goal of buying your first home.

Contact housing finance agencies. Provisional mortgage loans are extended to homebuyers in certain situations, like low income buyers or people planning to remodel houses in a targeted place, among others. With the help of a housing finance agency, you probably will get a below market interest rate, down payment help and other advantages. These types of agencies can help eligible homebuyers with a reduced interest rate, get you your down payment, and offer other advantages. These non-profit agencies were formed to build up community in particular places.

Learn about low-down and no-down mortgages.

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a significant part in aiding low to moderate-income families get mortgage loans. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to the private lenders, ensuring the buyers are eligible for a loan. Down payment requirements for FHA loans are lower than those of traditional mortgage loans, even though these loans have current interest rates. Closing costs can be covered by the mortgage, and your down payment could be as low as 3 percent of the purchase price.

  • VA mortgage loans

    VA loans are backed by the Department of Veterans Affairs. Service persons and veterans qualify for a VA loan, which usually offers a reasonable fixed interest rate, no down payment, and minimal closing costs. Even though the VA does not actually provide the loans, it does issue a certificate of eligibility to apply for a VA loan.

  • 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 home's price, and the first mortgage covers 80 percent. Rather than the traditional 20 percent down payment, the buyer just has to pull together the remaining 10 percent.

  • Carry-Back loans

    In a "carry back" mortgage, the seller commits to lend you a piece of his home equity to help you get your down payment money. In this scenario, you would finance the majority of the purchase price with a traditional lender and borrow the remaining amount from the seller. Usually you will pay a somewhat higher rate with the loan financed by the seller.

No matter your method of putting together down payment funds, the thrill of owning your own home will be just as sweet!

Need to talk about your down payment? Call us at 866-840-8745 x2.

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Carter Financial Solutions

1810 Pacific Ave
Stockton, CA 95204