Your Down Payment

Lots of folks who are looking to buy a new home qualify for several different kinds of mortgages, but they don't have a lot of money to put up the standard down payment. Here are a few straightforward methods that will help you put together a down payment

Slash your budget and build up savings. Turn your budget upside-down to find extra money to save for your down payment. You might also try enrolling in an automatic savings plan to automatically have a set amount from your take-home pay moved into savings. Some practical approaches to put together funds include moving into less expensive housing, and staying home for your family vacation for a year or two.

Work more and sell things you do not need. Look for an additional job. This can be exhausting, but the temporary trial can help you get your down payment. In addition, you can put together a comprehensive list of things you may be able to sell. Unworn gold jewelry can bring a good amount from local jewelry stores. A closetful of small items may add up to a fair amount at a garage or tag sale. You can also look into what your investments could sell for.

Borrow money from a retirement plan. Investigate the provisions of your particular plan. Many homebuyers get down payment money by withdrawing funds from Individual Retirement Accounts or borrowing from their 401(k) plans. Be sure to find out about the tax ramifications, your obligation for repaying funds, and possible penalties for withdrawing early.

Request a gift from family. Many buyers somtimes get 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 eager to help you reach the milestone of owning your own home.

Learn about housing finance agencies. These types of agencies provide special mortgage programs for moderate and low income borrowers, buyers with an interest in sprucing up a home within a targeted area, and additional particular types of buyers as defined by each agency. Working through this type of agency, you may receive a below market interest rate, down payment assistance and other advantages. These types of agencies may help eligible homebuyers with a reduced interest rate, get you your down payment, and offer other benefits. The principal goal of non-profit housing finance agencies is promoting residential ownership in certain areas.

Research no-down and low-down mortgages.

• FHA mortgage loans

  The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays a significant role in aiding low and moderate-income individuals get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to private lenders, ensuring the buyers are eligible for a home loan. Interest rates with an FHA loan are normally the market interest rate, but the down payment for an FHA loan will be lower than those of conventional loans. Closing costs might be included in the mortgage, while the down payment may be as low as 3 percent of the total amount.

• VA loans

  With a guarantee from the Department of Veterans Affairs, a VA loan is offered to service people and veterans. This particular loan requires no down payment, has limited closing costs, and provides a competitive interest rate. While the VA does not actually provide the mortgages, 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 you close with the first. Most of the time, the first mortgage is for 80% of the purchase price and the "piggyback" funds 10%. Instead of the traditional 20 percent down payment, the homebuyer will just have to cover the remaining 10 percent.

• Carry-Back loans

  In the option of the seller "carrying back a second mortgage," the you borrow part of the seller's home equity.. You would borrow the largest portion of the purchase price from a traditional mortgage lending institution and borrow the remainder from the seller. Usually this type of second mortgage has a higher rate of interest.

No matter how you gather your down payment, the thrill of owning your own home will be just as sweet!

Need to talk about down payment options? Call us at 2147390569.