Your Down Payment

Lots of borrowers can easily qualify for various loan programs, but they don't have much to pay the standard down payment. Get started here

Reduce expenses and save. Be on the look-out for ways to trim your expenditures to set aside funds for a down payment. There are bank programs in which some of your paycheck is automatically placed into a savings account every pay period. Some practical methods to put together funds include moving into less expensive housing, and skipping your vacation for a year or two.

Work a second job and sell items you do not need. Maybe you can get a second job to get 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 might want to consider selling any investments you hold.

Tap into your retirement funds. Check the provisions of your specific program. You can borrow funds from a 401(k) for you down payment or withdraw from an Individual Retirement Account. Make sure you are knowledgable about any penalties, the way this will affect on income taxes, and repayment terms.

Ask for a gift from family. First-time homebuyers are sometimes lucky enough to receive down payment help from giving parents and other family members who are anxious to help them get into their own home. Your family members may be inclined to help you reach the milestone of buying your first home.

Research housing finance agencies. These types of agencies provide provisional mortgage programs for low and moderate-income buyers, buyers with an interest in sprucing up a house in a particular area, and other specific types of buyers as defined by the agency. Working with a housing finance agency, you can be given a below market interest rate, down payment assistance and other advantages. These types of agencies can assist eligible buyers with a lower rate of interest, get you your down payment, and provide other advantages. These non-profit agencies exist to build up home ownership in particular places.

Find out about low-down and no-down mortgage loans.

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in helping low to moderate-income buyers qualify for mortgages. 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 private lenders, ensuring the buyers are eligible for a mortgage. Interest rates for an FHA loan usually feature the market interest rate, but the down payment requirements with an FHA loan will be smaller than those of conventional loans. The required down payment can go as low as three percent and the closing costs may be included in the mortgage loan.

  • 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 interest rate. While the loans aren't actually issued by the VA, the department verfifies applicants by providing eligibility certificates.

  • Piggy-back loans

    You may fund your down payment with a second mortgage that closes along with the first. In most cases the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The homebuyer covers the remaining 10%, instead of come up with the typical 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow a portion of the seller's home equity.. In this scenario, you would borrow the largest portion of the purchase price from a traditional mortgage lender and finance the remainder with the seller. Typically you'll pay a somewhat higher rate on the loan from the seller.

No matter how you gather down payment money, the thrill of reaching the goal of living in your own home will be just as sweet!

Want to discuss your down payment? Give us a call: 866-840-8745 x2.

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