Your Down Payment

Many borrowers can easily qualify for a loan, but they can't afford a large down payment. Do you want to buy a new house, but don't know how you should get together a down payment?

Slash your budget and build up savings. Look for ways to reduce your expenses to put away money for a down payment. You could also try enrolling in an automatic savings plan to automatically have a predetermined amount from your paycheck transferred into your savings account. Some effective ways to build up funds include moving into less expensive housing, and staying local for your vacation this year.

Work a second job and sell things you don't need. Try to find an additional job. This can be rough, but the temporary trial can provide your down payment money. In addition, you can put together a comprehensive list of things you can sell. Broken gold jewelry can be sold at local jewelry stores. Multiple small items might add up to a nice sum at a garage or tag sale. You might also look into what any investments you hold could sell for.

Tap into retirement funds. Research the specifics of your particular plan. It is possible to borrow funds from a 401(k) plan for you down payment or withdraw from an IRA. Make sure to ask your plan representative about the tax ramifications, repayment terms, and any early withdrawal penalties.

Request a gift from family. First-time buyers somtimes receive down payment assistance from thoughtful 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 goal of having your first home.

Learn about housing finance agencies. These agencies extend special loan programs to moderate and low income borrowers, buyers with an interest in renovating a residence in a targeted area, and additional particular kinds of buyers as defined by each agency. With the help of this kind of agency, you may get a below market interest rate, down payment assistance and other incentives. Housing finance agencies can assist eligible homebuyers with a reduced rate of interest, help with your down payment, and provide other benefits. These non-profit programs exist to boost the value of homes in specific areas.

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

• Federal Housing Administration (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 role in aiding low to moderate-income Americans get mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time homebuyers and others who may not be able to qualify for a typical loan by themselves, by providing mortgage insurance to the lenders. Down payment requirements for FHA loans are less than those for typical mortgages, although these mortgages have average interest rates. Closing costs might be financed within the mortgage, while the down payment may be as low as 3 percent of the total amount.

• VA loans

  Guaranteed by the Department of Veterans Affairs, a VA loan is offered to service people and veterans. This particular loan requires no down payment, has mimimal closing costs, and provides a competitive rate of interest. Even though the VA does not actually provide the loans, it does certify eligibility to qualify for a VA loan.

• Piggy-back loans

  A piggy-back loan is a second mortgage that closes at the same time as the first. Generally the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. Rather than the usual 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

• Carry-Back loans

  We a seller carries back a second mortgage, the seller loans you part of his or her home equity. The buyer funds most of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Usually this type of second mortgage will have a higher rate of interest.

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

Need to talk about the best options for down payments? Give us a call: 3032282254.