Your Down Payment

Lots of buyers can qualify for various loan programs, but they don't have much to put up the standard down payment. Do you want to buy a new home, but aren't sure how to get together a down payment?

Slash your budget and build up savings. Scrutinize your budget to uncover ways you can cut expenses to save for your down payment. You also could enroll in an automatic savings plan to automatically have a predetermined portion of your take-home pay transferred into a savings account. Some effective strategies to save additional funds include moving into housing that is less expensive, and skipping a year's vacation.

Work more and sell items you don't need. Perhaps you can find an additional job and save your earnings. Additionally, you can put together a comprehensive inventory of things you may be able to sell. Broken gold jewelry can be sold at local jewelry stores. A closetful of small things might add up to a fair amount at a garage or tag sale. Also, you might want to think about selling any investments you own.

Borrow from a retirement plan. Check the parameters of your particular program. It is possible to borrow money from a 401(k) plan for a down payment or withdraw from an Individual Retirement Account. Be sure you are clear about any penalties, the effect this will have on your taxes, and repayment terms.

Request a generous gift from family. Many homebuyers are sometimes fortunate enough to get down payment assistance from caring parents and other family members who may be anxious to help them get into their own home. Your family members may be willing to help you reach the milestone of having your own home.

Research housing finance agencies. Provisional loan programs are offered to homebuyers in specific situations, like low income homebuyers or future homeowners looking to improve houses in a targeted place, among others. Financing through a housing finance agency, you probably will receive a below market interest rate, down payment help and other benefits. Housing finance agencies can help eligible homebuyers with a lower interest rate, get you your down payment, and offer other advantages. The principal goal of non-profit housing finance agencies is boosting the purchase of homes in particular parts of the city.

Learn about low-down and no-down mortgage loans.

  • Federal Housing Administration (FHA) mortgage loans

    The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in helping low and moderate-income Americans qualify for mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to private lenders, enabling new homebuyers who might not be eligible for a conventional mortgage loan, to get a mortgage. Interest rates for an FHA loan usually feature the current interest rate, while the down payment with an FHA mortgage are less than those of conventional loans. The required down payment can go as low as three percent while the closing costs might be financed in the mortgage.

  • VA loans

    VA loans are backed by the Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which usually offers a competitive fixed interest rate, no down payment, and reduced closing costs. While it's true that the loans don't originate from the VA, the department verfifies applicants by issuing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that closes at the same time as the first. Usually the piggyback loan takes care of 10 percent of the home's amount, and the first mortgage finances 80 percent. The homebuyer covers the remaining 10%, rather than putting the typical 20% down payment.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow part of the seller's home equity.. In this scenario, you would borrow the largest portion of the purchase price from a traditional lending institution and borrow the remaining amount from the seller. Usually you will pay a somewhat higher interest rate on the loan financed by the seller.

No matter how you gather your down payment, the satisfaction of living in your own home will be just as great!

Need to talk about your down payment? Call us at 8668408745.

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Carter Financial Solutions

2291 W. March Ln Suite A100
Stockton, CA 95207