Your Down Payment

Lots of people who are looking to purchase a new house qualify for several different kinds of mortgages, but they don't have a lot of money to put up a down payment. Get started here

Slash your budget and build up savings. Turn your budget upside-down to uncover extra money to save for your down payment. Also, you can look into bank programs in which some of your take-home pay is automatically transferred into savings every pay period. Some practical ways to put together funds include moving into less expensive housing, and skipping your vacation for a year or two.

Work more and sell items you do not need. Try to find a second job. This can be exhausting, but the temporary trial can provide your down payment money. You can also get creative about the items you migh be able to put up for sale. A closetful of small things may add up to a fair amount at a garage or tag sale. You could also explore what any investments you own will sell for.

Borrow from retirement funds. Check the parameters of your particular program. It is possible to pull out money from a 401(k) for a down payment or withdraw from an Individual Retirement Account. Be sure you know about any penalties, the effect this may have on your income taxes, and repayment obligation.

Ask for help from generous members of your family. Many buyers are often lucky enough to receive help with their down payment assistance from thoughtful parents and other family members who are anxious to help get them in their own home. Your family members may be inclined to help you reach the milestone of having your first home.

Learn about housing finance agencies. These types of agencies extend provisional mortgage programs to low and moderate-income buyers, buyers with an interest in sprucing up a residence in a targeted part of the city, and additional particular types of buyers as specified by each agency. Financing with this type of agency, you probably will get a below market interest rate, down payment assistance and other perks. These kinds of agencies may help you with a lower interest rate, help with your down payment, and offer other advantages. The principal mission of non-profit housing finance agencies is boosting the purchase of homes in targeted areas.

Research no-down and low-down mortgage loan programs.

  • FHA loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital part in aiding low to moderate-income buyers qualify for mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA offers mortgage insurance to the private lenders, enabling new homebuyers who might not qualify for a traditional loan, to receive a mortgage. Interest rates with an FHA mortgage generally feature the current interest rate, while the down payment requirements for an FHA loan are less than those of conventional loans. Closing costs may be financed in the mortgage, and the down payment may be as low as 3% of the total.

  • VA mortgage loans

    VA loans are guaranteed by the Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which generally offers a reasonable fixed rate of interest, no down payment, and reduced closing costs. While it's true that the loans don't originate from the VA, the office verfifies borrowers 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 is for 10 percent of the purchase price, while the first mortgage finances 80 percent. The borrower pays the remaining 10%, instead of come up with the typical 20% down payment.

  • Carry-Back loans

    In a "carry back" situation, the seller commits to loan you some of his own equity to help you with your down payment money. The buyer funds most of the purchase price with a traditional mortgage program and borrows the remaining funds from the seller. Usually you'll pay a slightly higher interest rate on the loan from the seller.

No matter your method of pulling together your down payment money, the satisfaction of owning your own home will be just as great!

Need to talk about your down payment? Call us at (321) 777-7277.

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