Your Down Payment

Lots of people who are looking to purchase a new home qualify for a mortgage loan, but they don't have a lot of cash to put up a down payment. Want to buy a new house, but aren't sure how to put together a down payment?

Reduce expenses and save. Turn your budget inside out to discover extra money to save for your down payment. You might also try enrolling in an automatic savings plan to automatically have a predetermined portion of your take-home pay moved into savings. Some practical ways to save additional funds include moving into a residence that is less expensive, and staying home for your family vacation for a year or two.

Sell items you do not need and get a second job. Perhaps you can get a second job to get your down payment money. Additionally, you can make a comprehensive inventory of things you may be able to sell. Broken gold jewelry can be sold at local jewelers. Multiple small things may add up to a fair amount at a garage or tag sale. You could also look into what your investments will bring if sold.

Borrow from retirement funds. Check the parameters of your specific plan. It is possible to borrow money from a 401(k) for a down payment or perform a withdrawal from an IRA. Be sure you comprehend the tax consequences, your obligation for repayment, and early withdrawal penalties.

Ask for help from generous family members. First-time homebuyers somtimes receive down payment help from caring parents and other family members who may be willing to help them get into their first home. Your family members may be pleased to help you reach the milestone of having your own home.

Learn about housing finance agencies. These types of agencies offer provisional mortgate loan programs- for moderate and low income buyers, buyers with an interest in rehabilitating a residence in a specific area, and other groups as defined by the agency. Financing through a housing finance agency, you may receive a below market interest rate, down payment help and other perks. These types of agencies can help you with a lower interest rate, get you your down payment, and offer other benefits. The central purpose of non-profit housing finance agencies is boosting residential ownership in particular areas.

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

  • FHA mortgage loans

    The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays an important role in aiding low and moderate-income Americans get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in getting mortgages. FHA provides mortgage insurance to private lenders, enabling new homebuyers who might not be eligible for a traditional mortgage loan, to receive home financing. Interest rates for an FHA mortgage usually feature the going interest rate, while the down payment for an FHA mortgage will be below those of conventional loans. Closing costs might be included in the mortgage, and the down payment can be as low as 3 percent of the total amount.

  • VA loans

    With a guarantee from the Department of Veterans Affairs, a VA loan is offered to veterens and service people. This particular loan requires no down payment, has mimimal closing costs, and provides a competitive interest rate. While the VA doesn't issue the loans, it does issue a certificate of eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close at the same time as the first. Most of the time, the piggyback loan takes care of 10 percent of the purchase amount, while the first mortgage covers 80 percent. The homebuyer covers the remaining 10%, instead of come up with the usual 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the seller loans you part of his or her equity. You would finance the majority of the purchase price with a traditional mortgage lender and finance the remainder with the seller. Typically you will pay a slightly higher interest rate on the loan from the seller.

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

Need to talk about the best options for down payments? Give us a call: (321) 777-7277.

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