Your Down Payment

Many borrowers can easily qualify for several different kinds of mortgages, but they can't afford a large down payment. Here's where you start

Tighten your belt and save. Scrutinize the budget to discover extra money to go toward your down payment. Also, you can look into bank programs through which a portion of your take-home pay is automatically placed into a savings account each pay period. Some effective approaches to build up funds include moving into a residence that is less expensive, and staying local for your family vacation this year.

Sell things you do not really need and find a part-time job. Look for an additional job. This can be rough, but the temporary trial can help you get your down payment. In addition, you can put together a comprehensive list of things you can sell. Unworn gold jewelry can be sold at local jewelers. A closetful of small things can add up to a nice sum at a garage or tag sale. Also, you might want to think about selling any investments you hold.

Borrow from retirement funds. Explore the specifics for your individual plan. Many people get down payment money by withdrawing funds from IRAs or borrowing from their 401(k) programs. Make sure to learn about the tax ramifications, repayment terms, and any penalties for withdrawing early.

Ask for a gift from your family. Many buyers somtimes get down payment assistance from giving parents and other family members who are eager to help them get into their own home. Your family members may be inclined to help you reach the goal of owning your own home.

Learn about housing finance agencies. Special mortgage programs are extended to buyers in specific circumstances, like low income buyers or future homeowners looking to remodel homes in a specific place, among others. Financing with a housing finance agency, you may get a below market interest rate, down payment help and other perks. Housing finance agencies may assist eligible buyers with a reduced interest rate, help with your down payment, and offer other assistance. These non-profit programs to boost community in certain places.

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

• Federal Housing Administration (FHA) mortgage loans

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low to moderate-income families get mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids individuals in getting mortgages. FHA aids first-time buyers and others who might not be able to qualify for a conventional mortgage loan by themselves, by providing mortgage insurance to the private lenders. Interest rates with an FHA mortgage are usually the going interest rate, while the down payment for an FHA mortgage will be smaller than those of conventional loans. The required down payment may go as low as 3 percent and the closing costs might be packaged in the mortgage.

• VA mortgages

  With a guarantee from the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This special loan does not require a down payment, has mimimal closing costs, and offers a competitive rate of interest. While the VA does not finance the mortgages, it does certify eligibility to qualify for a VA mortgage.

• Piggy-back loans

  A piggy-back loan is a second mortgage that closes at the same time as the first. Generally the piggyback loan is for 10 percent of the purchase price, while the first mortgage covers 80 percent. The borrower pays the remaining 10%, instead of putting the usual 20% down payment.

• Carry-Back loans

  In a "carry back" mortgage, the seller agrees to loan you a piece of his home equity to help you with your down payment funds. In this scenario, you would borrow the majority of the purchase price from a traditional lending institution and finance the remainder with the seller. Typically you'll pay a somewhat higher rate with the loan financed by the seller.

The satisfaction will be the same, no matter which method you use to put together your down payment. Your brand new home will be your reward!

Want to discuss your down payment? Call us: 4078987559.