Your Down Payment

Lots of buyers qualify for several different kinds of mortgages, but they can't afford a large down payment. Get started here

Cut expenses and save. Be on the look-out for ways to trim your monthly expenses to save toward a down payment. You could also decide to enroll in an automatic savings plan at your bank to have a percentage of your pay automatically moved into a savings account. You would be wise to look into some big expenses in your spending history that you can do without, or reduce, at least temporarily. For example, you may decide to move into less expensive housing, or stay local for your vacation.

Work a second job and sell items you do not need. Perhaps you can find a second job and build up your earnings. You can also seriously consider the possessions you really need and the things you can sell. A closetful of small items might add up to a fair amount at a garage or tag sale. You could also research what your investments will sell for.

Borrow from retirement funds. Explore the specifics of your individual plan. You can borrow funds from a 401(k) plan for a down payment or perform a withdrawal from an IRA. Make sure to find out about the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for a gift from your family. Many homebuyers are sometimes fortunate enough to get down payment assistance from caring parents and other family members who are willing to help them get into their first home. Your family members may be happy at the chance to help you reach the milestone of owning your own home.

Contact housing finance agencies. Special mortgage loans are extended to homebuyers in certain situations, such as low income purchasers or buyers looking to renovating homes in a targeted neighborhood, among others. Financing with a housing finance agency, you can receive an interest rate that is below market, down payment assistance and other perks. Housing finance agencies can assist eligible buyers with a reduced interest rate, help with your down payment, and offer other benefits. The main mission of non-profit housing finance agencies is promoting residence ownership in certain parts of the city.

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

• FHA loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a significant part in assisting low to moderate-income Americans get mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who need to get mortgages. FHA offers mortgage insurance to private lenders, making the buyers eligible for a mortgage. Down payment requirements for FHA loans are lower than those with typical mortgage loans, even though these loans have current interest rates. The required down payment can be as low as three percent and the closing costs might be financed in the mortgage loan.

• VA mortgage loans

  VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can benefit from a VA loan, which usually offers a low fixed rate of interest, no down payment, and reduced closing costs. Although the mortgages are not actually issued by the VA, the department certifies applicants by issuing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close along with the first. Most of the time, the first mortgage covers 80% of the cost of the home and the "piggyback" funds 10%. The borrower covers the remaining 10%, rather than having to pull together the typical 20% down payment.

• Carry-Back loans

  With a carry-back mortgage, the you borrow part of the seller's home equity.. The buyer funds the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Usually you'll pay a somewhat higher interest rate with the loan from the seller.

No matter how you gather your down payment, the thrill of reaching the goal of living in your own home will be just as great!

Need to talk about your down payment? Give us a call at 7205988300.