Your Down Payment

Lots of borrowers can qualify for various loan programs, but they don't have a lot of cash to put up the standard down payment. Want to look into getting a new house, but don't know how you should get together your down payment?

Slash the budget and build up savings. Look for ways you can trim your expenses to set aside money for a down payment. There are bank programs in which some of your take-home pay is automatically placed into a savings account every pay period. Some effective strategies to put together funds include moving into less expensive housing, and skipping a year's vacation.

Work a second job and sell items you don't need. Try to find a second job. This can be rough, but the temporary difficulty can help you get your down payment. Additionally, you can put together a comprehensive list of items you can sell. Unused gold jewelry can be sold at local jewelers. Multiple small things can add up to a fair amount at a garage or tag sale. You can also research what your investments may sell for.

Borrow from your retirement funds. Explore the specifics of your particular plan. You can pull out money from a 401(k) for a down payment or get a withdrawal from an IRA. Make sure you understand about any penalties, the effect this could have on income taxes, and repayment terms.

Ask for assistance from members of your family. Many buyers somtimes get help with their down payment assistance from giving family members who are able to help get them in their own home. Your family members may be happy at the chance to help you reach the milestone of buying your first home.

Research housing finance agencies. These agencies provide provisional mortgage programs for low and moderate-income buyers, buyers with an interest in remodeling a house within a specific area, and other groups as defined by each agency. With the help of a housing finance agency, you may be given a below market interest rate, down payment assistance and other advantages. These types of agencies may assist you with a lower interest rate, get you your down payment, and provide other advantages. These non-profit programs to boost community in particular neighborhoods.

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

• Federal Housing Administration (FHA) loans

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in helping low and moderate-income buyers qualify for mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in qualifying for mortgage loans. FHA aids first-time buyers and others who might not be able to qualify for a traditional mortgage loan by themselves, by providing mortgage insurance to private lenders. Interest rates with an FHA mortgage typically feature the market interest rate, while 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 could be as low as 3% of the purchase price.

• VA loans

  VA loans are backed by the Department of Veterans Affairs. Veterens and service people can receive a VA loan, which usually offers a reasonable rate of interest, no down payment, and reduced closing costs. Even though the mortgages aren't actually provided by the VA, the office certifies applicants by providing eligibility certificates.

• 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 is for 10 percent of the purchase price, while the first mortgage covers 80 percent. In contrast to the usual 20 percent down payment, the buyer just has to cover the remaining 10 percent.

• Carry-Back loans

  We a seller carries back a second mortgage, the seller loans you part of his or her equity. The buyer funds most of the purchase price with a traditional mortgage program and borrows the remaining funds from the seller. Generally, this kind of second mortgage will have higher interest.

No matter your strategy of putting together down payment funds, the satisfaction of owning your own home will be just as great!

Want to discuss the best options for down payments? Give us a call: 3217777277.