Your Down Payment

Lots of people who would like to purchase a new home qualify for several different kinds of mortgages, but they don't have a lot of money to pay a down payment. Do you want to buy a new home, but aren't sure how you should put together your down payment?

Tighten your belt and save. Look for ways to reduce your expenditures to set aside money for a down payment. Also, you can look into bank programs through which some of your paycheck is automatically transferred into savings every pay period. Some effective approaches to save additional funds include moving into housing that is less expensive, and skipping a year's vacation.

Sell things you don't really need and find a second job. Look for a second job. This can be exhausting, but the temporary difficulty can help you get your down payment. You can also get creative about the items you can put up for sale. You may have desirable items you can sell at an auction website, or household goods for a garage or tag sale. Also, you might want to look into selling any investments you own.

Borrow your down payment from a retirement plan. Explore the specifics for your particular plan. It is possible to pull out funds from a 401(k) for a down payment or get a withdrawal from an Individual Retirement Account. Make sure you comprehend the tax consequences, your obligation for repayment, and penalties for withdrawing early.

Ask for assistance from family members. First-time buyers are sometimes lucky enough to get help with their down payment help from gracious parents and other family members who are eager to help get them in their first home. Your family members may be inclined to help you reach the goal of having your own home.

Contact housing finance agencies. Provisional mortgage loans are offered to homebuyers in specific circumstances, like low income homebuyers or future homeowners planning to renovating homes in a targeted neighborhood, among others. Working with this type of agency, you can be given a below market interest rate, down payment assistance and other benefits. These kinds of agencies may assist eligible homebuyers with a lower interest rate, help with your down payment, and offer other benefits. These non-profit programs were formed to build up home ownership in specific areas.

Find out about low-down and no-down mortgages.

  • FHA mortgage loans

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in aiding low and moderate-income individuals qualify for mortgages. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who need to get mortgages. FHA aids first-time homebuyers and others who would not be eligible for a conventional mortgage loan by themselves, by providing mortgage insurance to lenders. Interest rates with an FHA mortgage are normally the market interest rate, while the down payment amounts for an FHA loan will be lower than those of conventional loans. Closing costs might be financed in the mortgage, while the down payment may be as low as 3% of the total amount.

  • VA mortgages

    With a guarantee from the Department of Veterans Affairs, a VA loan assists veterens and service people. This special loan does not require a down payment, has reduced closing costs, and offers a competitive interest rate. Although the VA does not provide the mortgage loans, it does issue a certificate of eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that closes at the same time as the first. Most of the time, the piggyback loan is for 10 percent of the home's amount, and the first mortgage covers 80 percent. In contrast to the usual 20 percent down payment, the homebuyer just has to cover the remaining 10 percent.

  • Carry-Back loans

    In the case of a seller "carrying back a second mortgage," the seller loans you part of his or her home equity. You would finance the majority of the purchase price with a traditional lending institution and borrow the remainder from the seller. Usually this kind of second mortgage has higher interest.

No matter how you gather down payment funds, the satisfaction of living in your own home will be just as sweet!

Need to talk about down payment options? Call us: 7184417000.

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Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419