Your Down Payment

Lots of folks who are looking to purchase a new home can qualify for various loan programs, but they don't have a lot of money to put up a down payment. Below are a few straightforward ways to get together your down payment

Tighten your belt and save. Look for ways you can reduce your monthly expenditures to set aside money for a down payment. Also, you can look into bank programs through which some of your paycheck is automatically deposited into a savings account every pay period. Some practical ways to build up funds include moving into housing that is less expensive, and skipping your vacation for a year or two.

Work a second job and sell items you don't need. Try to get a second job. This can be rough, but the temporary trial can provide your down payment money. In addition, you can make an exhaustive list of things you may be able to sell. Unworn gold jewelry can bring a good price from local jewelry stores. Multiple small items could add up to a fair amount at a garage or tag sale. You could also research what your investments could sell for.

Borrow money from your retirement plan. Investigate the parameters of your specific plan. Some homebuyers get down payment money by withdrawing funds from their Individual Retirement Accounts or borrowing from their 401(k) plans. Make sure you understand about any penalties, the effect this may have on income taxes, and repayment terms.

Request a gift from family. First-time buyers are sometimes fortunate enough to get help with their down payment assistance from giving parents and other family members who may be willing to help them get into their first home. Your family members may be inclined to help you reach the milestone of having your first home.

Contact housing finance agencies. These agencies offer special mortgage programs for moderate and low income buyers, buyers with an interest in sprucing up a home within a particular part of the city, and additional certain kinds of buyers as defined by each finance agency. With the help of this kind of agency, you can receive an interest rate that is below market, down payment assistance and other benefits. Housing finance agencies may help you with a lower interest rate, get you your down payment, and provide other assistance. These non-profit agencies to promote community in particular areas.

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

  • Federal Housing Administration (FHA) mortgage loans

    The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in assisting low to moderate-income buyers qualify for mortgage loans. An office 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 homebuyers who will not qualify for a typical mortgage, to get a mortgage. Interest rates with an FHA mortgage are typically the current interest rate, while the down payment with an FHA loan will be smaller than those of conventional loans. The down payment may be as low as 3 percent while the closing costs might be covered by the mortgage loan.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan assists service people and veterans. This specialized loan does not require a down payment, has limited closing costs, and provides the advantage of a competitive rate of interest. Even though the mortgage loans don't originate from the VA, the department certifies applicants by issuing eligibility certificates.

  • Piggy-back loans

    You may fund a down payment using a second mortgage that closes at the same time as the first. Often the first mortgage is for 80% of the cost of the home and the "piggyback" is for 10%. The borrower pays the remaining 10%, instead of come up with the typical 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow a portion of the seller's home equity.. The buyer finances the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Generally, this type of second mortgage has a higher rate of interest.

The feeling of accomplishment will be the same, no matter how you manage to put together your down payment. Your brand new home will be your reward!

Need to talk about down payment options? Call us at 3032282254.

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Firelight Mortgage Consultants

Company NMLS#: 381658

7887 East Belleview Ave Ste 1100
Englewood, CO 80111