Your Down Payment

Many buyers qualify for a mortgage loan, but they can't afford a large down payment. Below are a few straightforward ways to put together your down payment

Reduce expenses and save. Look for ways you can trim your expenditures to put away money for a down payment. Also, you can look into bank programs through which some of your paycheck is automatically transferred into savings each pay period. You could look into some big expenses in your budget that you can live without, or reduce, at least temporarily. For example, you may decide to move into less expensive housing, or stay local for your annual vacation.

Sell things you don't really need and find a part-time job. Perhaps you can get a second job and build up your earnings. Additionally, you can make an exhaustive list of items you may be able to sell. Unused gold jewelry can be sold at local jewelers. Multiple small things might add up to a fair amount at a garage or tag sale. You can also explore what any investments you hold will sell for.

Borrow your down payment from your retirement plan. Explore the specifics of your individual plan. You may pull out money from a 401(k) plan for a down payment or make a withdrawal from an IRA. You will want to be sure you know about any penalties, the way this could affect on taxes, and repayment obligation.

Ask for a gift from family. First-time buyers somtimes get help with their down payment assistance from thoughtful parents and other family members who are willing to help them get into their own home. Your family members may be inclined to help you reach the goal of owning your own home.

Research housing finance agencies. Special loan programs are provided to buyers in specific situations, like low income homebuyers or homebuyers planning to renovating homes in a particular part of town, among others. Working through this kind of agency, you may receive a below market interest rate, down payment assistance and other advantages. Housing finance agencies can help eligible buyers with a reduced rate of interest, get you your down payment, and provide other assistance. The principal goal of not-for-profit housing finance agencies is to promote the purchase of homes in particular areas.

Find out about low-down and no-down mortgage loan programs.

  • FHA mortgages

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in assisting low to moderate-income Americans get mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to the private lenders, making the buyers eligible for a loan. Interest rates with an FHA mortgage typically feature the going interest rate, while the down payment for an FHA loan will be smaller than those of conventional loans. The required down payment can go as low as 3 percent while the closing costs might be covered by the mortgage loan.

  • VA loans

    With a guarantee from 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 mimimal closing costs, and provides the benefit of a competitive rate of interest. While it's true that the mortgages are not actually financed by the VA, the department verfifies borrowers by issuing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close with the first. Most of the time, the first mortgage is for 80% of the purchase amount and the "piggyback" is for 10%. The homebuyer covers the remaining 10%, rather than putting the usual 20% down payment.

  • Carry-Back loans

    In a "carry back" agreement, the seller agrees to lend you part of his own equity to help you with your down payment funds. The buyer finances most of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Typically you will pay a slightly higher interest rate with the loan financed by the seller.

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

Need to talk about your down payment? Give us a call at 7184417000.

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Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419