Your Down Payment

Lots of buyers can qualify for various loan programs, but they don't have much to pay the standard down payment. Want to look into getting a new home, but aren't sure how to put together your down payment?

Slash your budget and build up savings. Look for ways you can trim your monthly expenses to save toward a down payment. There are bank programs in which some of your paycheck is automatically deposited into savings each pay period. Some effective approaches to put together funds include moving into housing that is less expensive, and skipping a year's vacation.

Work a second job and sell items you don't need. Try to find a second job. This can be exhausting, but the temporary trial can provide your down payment money. In addition, you can make a comprehensive list of things you may be able to sell. Unused gold jewelry can be sold at local jewelers. Maybe you have desirable items you can sell on an auction website, or quality household goods for a tag or garage sale. Also, you can look into selling any investments you own.

Borrow your down payment from a retirement plan. Investigate the provisions of your particular plan. Some people get down payment money from withdrawing what they need from their Individual Retirement Accounts or borrowing from 401(k) programs. Be sure to ask your plan representative about the tax consequences, repayment terms, and penalties for withdrawing early.

Ask for help from generous members of your family. Many buyers somtimes get help with their down payment help from caring family members who are able to help get them in their first home. Your family members may be eager to help you reach the goal of owning your own home.

Contact housing finance agencies. These agencies offer provisional loan programs for moderate and low income homebuyers, buyers with an interest in remodeling a house within a specific part of the city, and additional groups as defined by the finance agency. With the help of a housing finance agency, you probably will receive an interest rate that is below market, down payment assistance and other benefits. These types of agencies can assist you with a reduced rate of interest, get you your down payment, and offer other advantages. The central goal of not-for-profit housing finance agencies is to boost residence ownership in certain parts of the city.

Explore no-down and low-down mortgage loan programs.

  • FHA mortgages

    The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays a critical role in aiding low to moderate-income families qualify for mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals who need to get mortgage loans. FHA aids first-time homebuyers and others who might not be eligible for a conventional mortgage loan by themselves, by offering mortgage insurance to lenders. Interest rates for an FHA loan normally feature the going interest rate, but the down payment requirements for an FHA mortgage will be smaller than those of conventional loans. The down payment can go as low as three percent while the closing costs can be packaged in the mortgage.

  • VA mortgage loans

    With a guarantee from the Department of Veterans Affairs, a VA loan assists service people and veterans. This specialized loan requires no down payment, has reduced closing costs, and provides a competitive rate of interest. While the mortgages are not actually financed by the VA, the department verfifies applicants by providing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. Usually the piggyback loan is for 10 percent of the home's price, and the first mortgage covers 80 percent. Rather than the usual 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

  • Carry-Back loans

    In a "carry back" situation, the seller commits to loan you a portion of his own equity to assist you with your down payment money. You would borrow the majority of the purchase price from a traditional lending institution and finance the remainder with the seller. Usually you will pay a somewhat higher rate on the loan financed by the seller.

The satisfaction will be the same, no matter how you manage to get together your down payment. Your new home will be your reward!

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

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Carter Financial Solutions

1810 Pacific Ave
Stockton, CA 95204