Your Down Payment

Lots of buyers can easily qualify for various loan programs, but they don't have a large sum of cash to pay the standard down payment. We have a few ideas

Cut expenses and save. Look for ways to trim your expenditures to put away money for a down payment. You might also decide to enroll in an automatic savings plan to automatically have a set portion of your paycheck deposited into your savings account. Some effective approaches to save additional funds include moving into less expensive housing, and skipping your vacation for a year or two.

Work a second job and sell items you don't need. Maybe you can get an additional job and save your earnings. You can also seriously consider the possessions you really need and the things you could be able to sell. Maybe you have desirable items you can put up for sale on an online auction, or quality household items for a garage or tag sale. You might also explore what any investments you own could bring if sold.

Borrow from retirement funds. Check the provisions of your particular plan. You can take out funds from a 401(k) plan for a down payment or withdraw from an IRA. Be sure to ask your plan representative about the tax consequences, your obligation for repaying funds, and possible penalties for withdrawing early.

Ask for help from family members. First-time homebuyers somtimes get down payment assistance from giving 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 goal of having your own home.

Contact housing finance agencies. These types of agencies provide special mortgage loans to moderate and low income borrowers, buyers with an interest in remodeling a house within a particular part of the city, and additional groups as defined by the agency. Working through this type of agency, you probably will be given an interest rate that is below market, down payment help and other benefits. Housing finance agencies may assist eligible homebuyers with a lower interest rate, help with your down payment, and provide other assistance. These non-profit programs to promote home ownership in particular areas.

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

• FHA mortgage 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 and moderate-income individuals qualify for mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time buyers and others who may not be able to qualify for a conventional mortgage loan by themselves, by offering mortgage insurance to the lenders. Interest rates for an FHA mortgage usually feature the going interest rate, but the down payment for an FHA mortgage will be lower than those of conventional loans. Closing costs can be covered by the mortgage, while the down payment can be as low as 3 percent of the purchase price.

• VA loans

  VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can receive a VA loan, which typically offers a low interest rate, no down payment, and reduced closing costs. While the VA does not provide the mortgages, it does certify eligibility to qualify for a VA mortgage.

• Piggy-back loans

  You can fund your down payment through a second mortgage that closes with the first. Usually the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The borrower covers the remaining 10%, rather than having to pull together the usual 20% down payment.

• Carry-Back loans

  In a "carry back" situation, the seller commits to loan you some of his home equity to help you get your down payment funds. You would borrow the majority of the purchase price from a traditional mortgage lending institution and finance the remaining amount with the seller. Typically, this type of second mortgage has a higher rate of interest.

The feeling of accomplishment will be the same, no matter how you manage to get together the down payment. Your new home will be well worth it!

Need to talk about down payment options? Give us a call: 4078987559.