Your Down Payment

Many borrowers can easily qualify for a mortgage loan, but they don't have a lot of money to put up the standard down payment. Do you want to look into getting a new house, but aren't sure how to put together your down payment?

Cut expenses and save. Scrutinize your budget to discover extra money to go toward your down payment. Also, you can look into bank programs through which a portion of your paycheck is automatically transferred into a savings account every pay period. Some effective methods to build up funds include moving into housing that is less expensive, and skipping your vacation for a year or two.

Sell things you don't need and find a second job. 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. Also, you can consider selling any investments you hold.

Tap into your retirement funds. Explore the details for your particular plan. Some people get down payment money by withdrawing from their Individual Retirement Accounts or taking money out of their 401(k) plans. Be sure you know about any penalties, the effect this may have on taxes, and repayment terms.

Request a generous gift from family. Many homebuyers are sometimes fortunate enough to receive help with their down payment help from giving parents and other family members who may be prepared to help them get into their first home. Your family members may be eager to help you reach the goal of owning your own home.

Learn about housing finance agencies. These types of agencies provide provisional mortgage loans to moderate and low income buyers, buyers interested in remodeling a home within a specific area, and other groups as defined by the finance agency. With the help of this type of agency, you can get an interest rate that is below market, down payment assistance and other incentives. Housing finance agencies may help eligible homebuyers with a lower interest rate, get you your down payment, and provide other assistance. These non-profit programs exist to promote community in specific neighborhoods.

Learn about low-down and no-down mortgage loan programs.

  • Federal Housing Administration (FHA) mortgages

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low and moderate-income Americans qualify for mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who wish to get mortgages. FHA assists first-time homebuyers and others who may not be eligible for a typical mortgage loan by themselves, by providing mortgage insurance to the lenders. Down payment sums for FHA mortgages are less than those for traditional mortgage loans, even though these mortgages have current rates of interest. Closing costs might be financed within the mortgage, while your down payment might be as low as 3 percent of the purchase price.

  • VA mortgages

    VA loans are guaranteed by the Department of Veterans Affairs. Service persons and veterans can get a VA loan, which typically offers a competitive fixed rate of interest, no down payment, and limited closing costs. While the mortgages don't originate from the VA, the department verfifies borrowers by issuing eligibility certificates.

  • Piggy-back loans

    You can finance your down payment with a second mortgage that closes along with the first. Most of the time, the first mortgage is for 80% of the cost of the home and the "piggyback" is for 10%. Rather than the usual 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

  • Carry-Back loans

    In the option of a seller "carrying back a second mortgage," the you borrow part of the seller's home equity.. The buyer finances the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Generally, this type of second mortgage will have a higher rate of interest.

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

Want to discuss the best options for down payments? Call us: 8668408745.

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Carter Financial Solutions

2291 W. March Ln Suite A100
Stockton, CA 95207