Your Down Payment

Many folks who are looking to buy a new home can easily qualify for several different kinds of mortgages, but they don't have a lot of cash to put up a down payment. Do you want to look into getting a new home, but aren't sure how you should put together a down payment?

Slash the budget and build up savings. Turn your budget upside-down to uncover extra money to go toward your down payment. You could also try enrolling in an automatic savings plan at your bank to automatically have a predetermined amount from your paycheck moved into savings. You could look into some big expenses in your spending history that you can live without, or trim, at least temporarily. Here are a couple of examples: you may move into less expensive housing, or skip a family vacation.

Work a second job and sell items you do not need. Look for an additional job. This can be exhausting, but the temporary difficulty can help you get your down payment. You can also seriously consider the possessions you actually need and the things you migh be able to sell. A closetful of small items may add up to a nice sum at a garage or tag sale. Also, you might want to think about selling any investments you hold.

Borrow from your retirement funds. Explore the specifics of your individual plan. Many homebuyers get down payment money from withdrawing from their IRAs or borrowing from their 401(k) programs. Be sure you comprehend the tax ramifications, your obligation for repayment, and any penalties for withdrawing early.

Ask for assistance from family members. First-time buyers somtimes receive down payment assistance from gracious family members who are anxious to help them get into their own home. Your family members may be pleased to help you reach the goal of owning your own home.

Research housing finance agencies. Provisional mortgate loan programs are extended to homebuyers in certain circumstances, like low income buyers or future homeowners looking to improve houses in a certain neighborhood, among others. Working with this type of agency, you probably will get a below market interest rate, down payment assistance and other incentives. These types of agencies can help eligible buyers with a reduced interest rate, help with your down payment, and provide other assistance. The central mission of non-profit housing finance agencies is build up home ownership in particular areas.

Research no-down and low-down mortgage loans.

• Federal Housing Administration (FHA) mortgages

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a vital role in helping low and moderate-income families qualify for mortgage loans. 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 buyers who might not be eligible for a traditional loan, to obtain financing. Down payment amounts for FHA loans are smaller than those for traditional mortgage loans, even though these mortgages have current rates of interest. Closing costs can be financed within the mortgage, and your down payment could be as low as 3% of the total.

• VA loans

  VA loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can benefit from a VA loan, which generally offers a reasonable interest rate, no down payment, and minimal closing costs. While the VA doesn't finance the mortgages, it does certify eligibility to qualify for a VA loan.

• Piggy-back loans

  You can finance your down payment through a second mortgage that closes with the first. Usually the piggyback loan takes care of 10 percent of the home's amount, while the first mortgage finances 80 percent. The homebuyer pays the remaining 10%, rather than putting the typical 20% down payment.

• Carry-Back loans

  We a seller carries back a second mortgage, the seller loans you part of his or her equity. The buyer funds the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Often, this type of second mortgage will have a higher rate of interest.

No matter your strategy of getting together your down payment, the thrill of owning your own home will be just as sweet!

Need to talk about the best options for down payments? Call us: 3032282254.