Your Down Payment

Lots of borrowers can easily qualify for a mortgage loan, but they can't afford a large down payment. Want to buy a new house, but don't know how to get together your down payment?

Tighten your belt and save. Scrutinize your budget to uncover extra money to save for your down payment. There are bank programs through which a specific portion of your take-home pay is automatically deposited into a savings account each pay period. You would be wise to look into some big expenses in your budget that you can live without, or reduce, at least temporarily. Here are a couple of examples: you may move into less expensive housing, or skip a family vacation.

Sell items you do not really need and get a second job. Try to find an additional job. This can be exhausting, but the temporary trial can help you get your down payment. You can also get creative about the things you migh be able to sell. Maybe you have collectibles you can sell at an auction website, or quality household goods for a garage or tag sale. Also, you might want to consider selling any investments you hold.

Borrow funds from a retirement plan. Investigate the provisions of your particular program. Some people get down payment money by withdrawing from their IRAs or borrowing from 401(k) programs. Be sure you comprehend the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for assistance from generous members of your family. First-time homebuyers are often fortunate enough to get down payment assistance from gracious parents and other family members who are eager to help them get into their own home. Your family members may be eager to help you reach the milestone of owning your first home.

Learn about housing finance agencies. Special loan programs are provided to homebuyers in specific circumstances, like low income homebuyers or homebuyers planning to renovating houses in a targeted neighborhood, among others. 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 you with a lower rate of interest, get you your down payment, and offer other advantages. These non-profit programs to boost home ownership in particular areas.

Find out about low-down and no-down mortgage loans.

  • 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 a vital role in aiding low and moderate-income Americans get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who wish to qualify for home financing. FHA assists first-time buyers and others who may not be able to qualify for a conventional loan by themselves, by offering mortgage insurance to lenders. Interest rates for an FHA mortgage typically feature the market interest rate, but the down payment with an FHA loan are below those of conventional loans. Closing costs may be covered by the mortgage, while your down payment might be as low as 3% of the total.

  • VA mortgage loans

    Guaranteed by the Department of Veterans Affairs, a VA loan is offered to veterens and service people. This special loan does not require a down payment, has reduced closing costs, and provides a competitive interest rate. Although the VA does not provide the mortgage loans, it does certify eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that closes along with the first. Usually the piggyback loan is for 10 percent of the purchase amount, while the first mortgage finances 80 percent. The borrower pays the remaining 10%, rather than having to pull together the typical 20% down payment.

  • Carry-Back loans

    In a "carry back" mortgage, the seller commits to lend you some of his own equity to assist you with your down payment funds. You would finance the majority of the purchase price with a traditional mortgage lender and borrow the remaining amount from the seller. Typically you will pay a slightly higher interest rate with the loan from the seller.

No matter your strategy of getting together down payment funds, the thrill of living in your own home will be just as great!

Want to discuss the best options for down payments? Give us a call at 720-598-8300.

Get a New Loan Quote

Looking for a new home loan? Fill out the following form to get a fast quote from us.

Contact Info
Property Information
Mortgage Information
Questions