Your Down Payment

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

Tighten your belt and save. Turn your budget inside out to uncover ways you can cut expenses to go toward your down payment. Also, you can look into bank programs in which some of your paycheck is automatically transferred into a savings account each pay period. Some effective approaches to save additional funds include moving into a residence that is less expensive, and skipping a year's vacation.

Sell things you do not need and get a second 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 make a comprehensive inventory of things you can sell. Unused gold jewelry can bring a good price from local jewelry stores. Multiple small items can add up to a fair amount at a garage or tag sale. You can also research what any investments you hold could sell for.

Borrow from your retirement funds. Investigate the provisions of your retirement plan. It is possible to borrow funds from a 401(k) plan for you down payment or get a withdrawal from an IRA. Be sure to learn about the tax consequences, your obligation for repaying the money, and any early withdrawal penalties.

Ask for help from generous family members. Many homebuyers somtimes get down payment help from caring family members who may be willing to help get them in their own home. Your family members may be willing to help you reach the goal of having your own home.

Contact housing finance agencies. Provisional loan programs are extended to buyers in specific circumstances, like low income buyers or people planning to renovating homes in a particular neighborhood, among others. With the help of this type of agency, you can get a below market interest rate, down payment help and other perks. Housing finance agencies can assist eligible buyers with a lower rate of interest, help with your down payment, and offer other assistance. The primary goal of not-for-profit housing finance agencies is to promote residence ownership in particular areas.

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

  • Federal Housing Administration (FHA) mortgages

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low and moderate-income Americans get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA helps first-time homebuyers and others who would not be able to qualify for a traditional mortgage on their own, by providing mortgage insurance to lenders. Down payment requirements for FHA mortgages are below those for conventional mortgage loans, although these loans hold average rates of interest. Closing costs may be included in the mortgage, while your down payment can be as low as 3% of the total.

  • VA mortgages

    With a guarantee from the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This particular loan requires no 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 office verfifies borrowers by providing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that closes with the first. Usually the first mortgage is for 80% of the purchase amount and the "piggyback" is for 10%. Rather than the usual 20 percent down payment, the buyer will just have 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 home equity. You would finance the largest portion of the purchase price with a traditional lender and finance the remaining amount with the seller. Usually you will pay a somewhat higher rate with the loan financed by the seller.

The satisfaction will be the same, no matter which approach you use to put together your down payment. Your new home will be your reward!

Want to discuss down payments? Give us a call at (434) 975-5626.