Your Down Payment

Lots of buyers can qualify for a loan, but they don't have a lot of money to pay the standard down payment. Do you want to look into getting a new home, but aren't sure how to get together a down payment?

Tighten your belt and save. Turn your budget upside-down to discover extra money to save for your down payment. You could also try enrolling in an automatic savings plan at your bank to have a percentage of your pay automatically deposited into your savings account. Some effective ways to build up funds include moving into housing that is less expensive, and staying local for your vacation for a year or two.

Sell things you don't really need and get a second job. Look for a second job. This can be exhausting, but the temporary difficulty can provide your down payment money. Additionally, you can put together an exhaustive list of things you can sell. Unused gold jewelry can bring a good price from local jewelers. Maybe you have desirable items you can sell on an auction website, or quality household goods for a garage or tag sale. You might also explore what any investments you own will sell for.

Borrow from retirement funds. Check the provisions of your particular plan. Many people get down payment money from withdrawing what they need from Individual Retirement Accounts or borrowing from 401(k) programs. Make sure you are clear about any penalties, the way this may affect on taxes, and repayment obligation.

Request a gift from your family. Many homebuyers somtimes receive help with their down payment assistance from gracious parents and other family members who are willing to help get them in their own home. Your family members may be pleased to help you reach the goal of having your own home.

Contact housing finance agencies. Special mortgage loans are offered to buyers in certain circumstances, such as low income buyers or people planning to renovating houses in a specific neighborhood, among others. Working with a housing finance agency, you probably will be given a below market interest rate, down payment assistance and other advantages. These kinds of agencies can help eligible homebuyers with a lower rate of interest, get you your down payment, and offer other advantages. The main mission of not-for-profit housing finance agencies is to boost the purchase of homes in targeted places.

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

• FHA mortgage loans

  The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays a vital part in aiding low to moderate-income families get 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, enabling new homebuyers who may not qualify for a traditional loan, to get financing. Down payment sums for FHA mortgages are smaller than those of traditional mortgages, even though these mortgages come with average rates of interest. The down payment may be as low as three percent while the closing costs could be covered by the mortgage loan.

• VA mortgage loans

  VA loans are guaranteed by the U.S. Department of Veterans Affairs. Veterens and service people qualify for a VA loan, which usually offers a low fixed rate of interest, no down payment, and limited closing costs. While it's true that the loans are not actually issued by the VA, the office certifies applicants by issuing eligibility certificates.

• Piggy-back loans

  You can finance a down payment with a second mortgage that closes at the same time as the first. Most of the time, the piggyback loan is for 10 percent of the home's amount, and the first mortgage covers 80 percent. The borrower pays the remaining 10%, rather than come up with the usual 20% down payment.

• Carry-Back loans

  In a "carry back" situation, the seller agrees to loan you a portion of his home equity to help you get your down payment money. In this scenario, you would borrow the largest portion of the purchase price from a traditional lender and borrow the remainder from the seller. Typically you'll pay a slightly higher interest rate on the loan financed by the seller.

No matter your strategy of putting together down payment money, the satisfaction of reaching the goal of living in your own home will be just as great!

Want to discuss your down payment? Call us: (321) 777-7277.