Your Down Payment

Lots of people who are looking to buy a new house can easily qualify for a mortgage loan, but they can't afford a large down payment. We have a few ideas

Slash your budget and build up savings. Scrutinize the budget to find extra money to save for your down payment. You might also try enrolling in an automatic savings plan to have a portion of your pay automatically deposited into savings. Some practical ways to build up funds include moving into a residence that is less expensive, and skipping your vacation for a year or two.

Work a second job and sell items you do not need. Look for an additional job. This can be exhausting, but the temporary difficulty can provide your down payment money. In addition, you can make an exhaustive inventory of items you can sell. Unworn gold jewelry can be sold at local jewelers. You might own collectibles you can put up for sale at an auction website, or quality household items for a tag or garage sale. Also, you can think about selling any investments you hold.

Borrow funds from your retirement plan. Investigate the provisions of your retirement plan. You can take out money from a 401(k) plan for a down payment or make a withdrawal from an Individual Retirement Account. Make sure to learn about the tax ramifications, repayment terms, and possible penalties for withdrawing early.

Ask for a gift from family. Many homebuyers somtimes receive help with their down payment help from gracious family members who are able to help them get into their own home. Your family members may be willing to help you reach the goal of having your first home.

Research housing finance agencies. Special mortgate loan programs are extended to buyers in specific circumstances, like low income purchasers or future homeowners looking to renovating houses in a targeted place, among others. With the help of this kind of agency, you can receive an interest rate that is below market, down payment assistance and other incentives. Housing finance agencies may assist you with a lower interest rate, help with your down payment, and offer other assistance. These non-profit programs exist to boost the value of homes in particular places.

Learn about low-down and no-down mortgage loan programs.

• FHA mortgage loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low to moderate-income individuals qualify for mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals who need to qualify for home financing. FHA helps first-time homebuyers and others who may not be able to qualify for a conventional mortgage loan by themselves, by offering mortgage insurance to the lenders. Down payment amounts for FHA mortgages are below those of conventional mortgage loans, although these mortgages hold average interest rates. The down payment may be as low as three percent and the closing costs could be included in the mortgage.

• VA mortgage loans

  VA loans are backed by the U.S. Department of Veterans Affairs. Service persons and veterans can benefit from a VA loan, which generally offers a reasonable rate of interest, no down payment, and limited closing costs. While the VA doesn't actually issue the mortgage loans, it does certify eligibility to apply for a VA loan.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close with the first. Often the first mortgage covers 80% of the purchase price and the "piggyback" funds 10%. The homebuyer pays the remaining 10%, instead of putting the usual 20% down payment.

• Carry-Back loans

  With a carry-back mortgage, the you borrow part of the seller's home equity.. In this scenario, you would finance the majority of the purchase price with a traditional lender and finance the remainder with the seller. Generally, this form of second mortgage has higher interest.

No matter your method of pulling together down payment funds, the satisfaction of living in your own home will be just as sweet!

Need to talk about the best options for down payments? Call us: 7184417000.