Your Down Payment

Many borrowers qualify for a loan, but they don't have much to pay the standard down payment. Want to look into getting a new house, but don't know how to put together your down payment?

Reduce expenses and save. Turn your budget upside-down to find extra money to save for your down payment. You might also try enrolling in an automatic savings plan to have a percentage of your pay automatically moved into your savings account. Some effective methods to put together funds include moving into less expensive housing, and staying local for your vacation for a year or two.

Work more and sell things you do not need. Perhaps you can get an additional job and build up your earnings. In addition, you can put together a comprehensive inventory of items you may be able to sell. Broken gold jewelry can bring a good amount from local jewelry stores. Maybe you own collectibles you can put up for sale at an auction website, or household goods for a garage or tag sale. Also, you can think about selling any investments you own.

Tap into retirement funds. Check the parameters of your retirement program. It is possible to borrow money from a 401(k) plan for a down payment or get a withdrawal from an Individual Retirement Account. Make sure to find out about the tax ramifications, repayment terms, and early withdrawal penalties.

Ask for help from members of your family. First-time buyers are sometimes fortunate enough to receive help with their down payment assistance from thoughtful parents and other family members who may be able to help them get into their own home. Your family members may be pleased at the chance to help you reach the goal of having your first home.

Research housing finance agencies. Provisional mortgate loan programs are provided to buyers in specific situations, such as low income homebuyers or homebuyers planning to renovating houses in a targeted part of town, among others. Working with a housing finance agency, you may be given an interest rate that is below market, down payment assistance and other advantages. These types of agencies may assist eligible homebuyers with a reduced rate of interest, get you your down payment, and provide other benefits. These non-profit programs were established to build up the value of homes in particular places.

Research no-down and low-down mortgages.

  • Federal Housing Administration (FHA) mortgage loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a significant part in assisting low to moderate-income families get mortgages. Part 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, making the buyers eligible for a mortgage loan. Down payment totals for FHA loans are below those of conventional mortgage loans, even though these loans come with average interest rates. The down payment can be as low as 3 percent while the closing costs might be financed in the mortgage loan.

  • VA mortgage loans

    Guaranteed by the Department of Veterans Affairs, a VA loan assists veterens and service people. This specialized loan requires no down payment, has reduced closing costs, and offers a competitive rate of interest. While it's true that the mortgage loans are not actually financed by the VA, the department verfifies applicants by providing eligibility certificates.

  • Piggy-back loans

    You may fund a down payment with a second mortgage that closes along with the first. Generally the first mortgage covers 80% of the cost of the home and the "piggyback" funds 10%. The borrower pays the remaining 10%, rather than come up with the usual 20% down payment.

  • Carry-Back loans

    In a "carry back" situation, the seller commits to lend you part of his home equity to assist you with your down payment funds. The buyer funds most of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Usually you'll pay a somewhat higher rate with the loan from the seller.

No matter your strategy of pulling together down payment funds, the thrill of reaching the goal of owning your own home will be just as sweet!

Want to discuss down payment options? Call us: 866-840-8745 x2.

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Carter Financial Solutions

1810 Pacific Ave
Stockton, CA 95204