Your Down Payment

Many buyers qualify for a loan, but they don't have a lot of cash to put up a down payment. Here are a few ways to get together your down payment

Slash the budget and build up savings. Scrutinize the budget to discover ways you can cut expenses to save for your down payment. There are bank programs through which some of your take-home pay is automatically placed into savings each pay period. Some effective approaches to build up funds include moving into less expensive housing, and staying local for your family vacation for a year or two.

Work a second job and sell things you don't need. Try to find a second job. This can be rough, but the temporary trial can help you get your down payment. Additionally, you can make a comprehensive list of items you can sell. Broken gold jewelry can be sold at local jewelers. Maybe you own desirable items you can sell on an auction website, or quality household items for a garage or tag sale. You might also research what your investments may sell for.

Borrow from retirement funds. Check the parameters of your particular plan. Many homebuyers get down payment money by withdrawing funds from IRAs or taking funds out of their 401(k) plans. You will need to be sure you are knowledgable about any penalties, the way this could affect on income taxes, and repayment obligation.

Ask for help from family members. Many homebuyers are often lucky enough to get down payment assistance from thoughtful parents and other family members who may be anxious to help get them in their own home. Your family members may be pleased to help you reach the milestone of owning your own home.

Contact housing finance agencies. These types of agencies provide provisional mortgate loan programs- for moderate and low income borrowers, buyers with an interest in sprucing up a home in a specific area, and other groups as specified by each finance agency. Working through a housing finance agency, you may get an interest rate that is below market, down payment assistance and other benefits. These kinds of agencies may assist you with a reduced rate of interest, get you your down payment, and provide other advantages. These non-profit programs to promote community in specific places.

Find out about low-down and no-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 an important part in helping low and moderate-income buyers get mortgage loans. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to private lenders, enabling new homebuyers who may not be eligible for a traditional mortgage loan, to get a mortgage. Interest rates for an FHA mortgage normally feature the current interest rate, but the down payment amounts for an FHA loan will be lower than those of conventional loans. Closing costs can be financed in the mortgage, while your down payment may be as low as 3 percent of the purchase price.

• VA mortgages

  With a guarantee from the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This particular loan does not require a down payment, has reduced closing costs, and provides a competitive rate of interest. While the VA does not provide the loans, it does certify eligibility to apply for a VA mortgage.

• Piggy-back loans

  You may finance a down payment through a second mortgage that closes at the same time as the first. In most cases the first mortgage is for 80% of the cost of the home and the "piggyback" is for 10%. Rather than the traditional 20 percent down payment, the buyer just has to pull together the remaining 10 percent.

• Carry-Back loans

  In a "carry back" agreement, the seller agrees to lend you part of his own equity to help you get your down payment money. You would finance the largest portion of the purchase price with a traditional mortgage lending institution and borrow the remainder from the seller. Usually you will pay a slightly higher interest rate with the loan from the seller.

Need to talk about the best options for down payments? Give us a call at 2148657442.