Putting Together Your Down Payment

Many borrowers qualify for various loan programs, but they don't have a large sum of cash to pay a down payment. Get started here

Tighten your belt and save. Scrutinize the budget to uncover ways you can cut expenses to go toward your down payment. You could also try enrolling in an automatic savings plan to have a percentage of your pay automatically moved into a savings account. Some practical approaches to put together funds include moving into less expensive housing, and staying home for your family vacation for a year or two.

Sell things you don't really need and get a part-time job. Try to find a second job. This can be rough, but the temporary trial can help you get your down payment. Additionally, you can put together a comprehensive list of things you may be able to sell. Unworn gold jewelry can be sold at local jewelry stores. Multiple small things might add up to a nice sum at a garage or tag sale. Also, you might want to look into selling any investments you own.

Tap into your retirement funds. Investigate the parameters of your retirement program. Many people get down payment money from withdrawing funds from their IRAs or pulling funds out of their 401(k) programs. You will need to make sure you understand about any penalties, the way this will affect on income taxes, and repayment obligation.

Ask for assistance from generous family members. Many homebuyers somtimes receive down payment help from giving family members who are eager to help get them in their first home. Your family members may be inclined to help you reach the milestone of buying your own home.

Learn about housing finance agencies. Provisional mortgage loans are provided to homebuyers in specific situations, such as low income homebuyers or future homeowners planning to renovating houses in a certain area, among others. With the help of this type of agency, you may get an interest rate that is below market, down payment help and other benefits. These kinds of agencies may help eligible buyers with a lower rate of interest, help with your down payment, and offer other benefits. These non-profit programs exist to build up home ownership in particular places.

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

• FHA mortgage loans

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a significant part in helping low and moderate-income families qualify for mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals in getting mortgages. FHA helps first-time homebuyers and others who may not be eligible for a typical mortgage loan by themselves, by offering mortgage insurance to lenders. Down payment requirements for FHA loans are lower than those of traditional mortgages, even though these loans come with current rates of interest. Closing costs might be included in the mortgage, while your down payment can be as low as 3 percent of the total amount.

• VA mortgages

  With a guarantee from the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This special loan requires no down payment, has mimimal closing costs, and provides the advantage of a competitive interest rate. While it's true that the loans are not actually financed by the VA, the department certifies borrowers by providing eligibility certificates.

• Piggy-back loans

  You can finance a down payment using a second mortgage that closes along with the first. Most of the time, the first mortgage is for 80% of the purchase price and the "piggyback" funds 10%. Instead of the traditional 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

• Carry-Back loans

  In a "carry back" situation, the seller commits to loan you a portion of his home equity to help you with your down payment money. The buyer finances the highest percentage of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Generally, this kind of second mortgage will have a higher rate of interest.

No matter your strategy of putting together your down payment funds, the thrill 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 at 3217777277.