Your Down Payment

Lots of buyers can qualify for several different kinds of mortgages, but they don't have a lot of money to pay a down payment. Start here

Tighten your belt and save. Look for ways to reduce your monthly expenses to put away money for a down payment. Also, you can look into bank programs in which a specific portion of your take-home pay is automatically placed into savings every pay period. You might look into some big expenses in your spending history that you can give up, or trim, at least temporarily. For example, you may decide to move into less expensive housing, or stay close to home for your annual vacation.

Work more and sell items you do not need. Perhaps you can find an additional job to get your down payment money. In addition, you can make an exhaustive list of items you can sell. Unworn gold jewelry can bring a good amount from local jewelers. Maybe you own collectibles you can put up for sale at an online auction, or household items for a tag or garage sale. You could also research what your investments will bring if sold.

Borrow your down payment from your retirement plan. Research the specifics of your individual plan. It is possible to borrow funds from a 401(k) for you down payment or make a withdrawal from an IRA. You will need to ensure you understand about any penalties, the effect this could have on taxes, and repayment obligation.

Request a generous gift from family. First-time homebuyers somtimes get help with their down payment help from caring parents and other family members who may be eager to help get them in their first home. Your family members may be eager to help you reach the milestone of having your first home.

Research housing finance agencies. These types of agencies provide provisional mortgate loan programs to moderate and low income borrowers, buyers with an interest in remodeling a home within a specific area, and other particular kinds of buyers as specified by the agency. Working through this type of agency, you can be given a below market interest rate, down payment assistance and other benefits. These types of agencies can assist you with a reduced interest rate, get you your down payment, and offer other advantages. The primary goal of non-profit housing finance agencies is boosting home ownership in specific parts of the city.

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

• Federal Housing Administration (FHA) mortgage loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital part in assisting low and moderate-income Americans qualify for mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in qualifying for mortgages. FHA assists first-time buyers and others who might not be able to qualify for a conventional mortgage on their own, by providing mortgage insurance to the lenders. Down payment totals for FHA mortgages are below those with traditional mortgages, although these mortgages have average rates of interest. Closing costs may be financed in the mortgage, while the down payment can be as low as 3 percent of the purchase price.

• VA loans

  With a guarantee from the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This particular loan requires no down payment, has reduced closing costs, and offers a competitive rate of interest. Although the mortgages don't originate from the VA, the office verfifies applicants by providing eligibility certificates.

• Piggy-back loans

  You may fund a down payment using a second mortgage that closes with the first. Generally the piggyback loan is for 10 percent of the home's price, while the first mortgage covers 80 percent. The borrower pays 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 a portion of the seller's home equity.. The buyer finances the highest percentage of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Typically, this form of second mortgage will have a higher rate of interest.

No matter your strategy of getting together your down payment, the satisfaction of owning your own home will be just as great!

Want to discuss down payment options? Call us: 2147390569.