Your Down Payment

Lots of folks who are looking to buy a new home can easily qualify for a loan, but they don't have a lot of money to pay a down payment. Here are a few methods that will help you get together a down payment

Tighten your belt and save. Scrutinize the budget to discover ways you can cut expenses to go toward your down payment. You could also decide to enroll in an automatic savings plan to have a portion of your pay automatically moved into a savings account. Some practical approaches to build up funds include moving into a residence that is less expensive, and skipping a year's vacation.

Work a second job and sell items you do not need. Look for a second job. This can be rough, but the temporary difficulty can help you get your down payment. In addition, you can make an exhaustive inventory of items you can sell. Unworn gold jewelry can bring a good price from local jewelers. Maybe you own collectibles you can sell at an online auction, or quality household items for a garage or tag sale. You might also look into what your investments may bring if sold.

Tap into retirement funds. Check the parameters of your retirement program. Many homebuyers get down payment money from withdrawing from their IRAs or getting money out of 401(k) programs. Be sure you understand about any penalties, the way this could affect on your income taxes, and repayment obligation.

Ask for assistance from generous family members. First-time homebuyers are sometimes fortunate enough to get help with their down payment assistance from gracious family members who are prepared to help them get into their first home. Your family members may be willing to help you reach the milestone of owning your first home.

Research housing finance agencies. These agencies offer special mortgate loan programs- for moderate and low income homebuyers, buyers with an interest in remodeling a residence within a particular area, and additional particular types of buyers as defined by each agency. With the help of this type of agency, you can receive an interest rate that is below market, down payment help and other benefits. Housing finance agencies may help you with a lower interest rate, get you your down payment, and provide other advantages. These non-profit programs to promote the value of homes in specific places.

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 part in helping low and moderate-income individuals qualify for mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who need to get mortgage loans. FHA assists first-time homebuyers and others who would not be eligible for a conventional loan by themselves, by providing mortgage insurance to private lenders. Down payment totals for FHA loans are lower than those for typical mortgages, even though these loans have average interest rates. Closing costs might be financed in the mortgage, and the down payment can be as low as 3 percent of the purchase price.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This special loan requires no down payment, has mimimal closing costs, and offers a competitive interest rate. While it's true that the loans don't originate from the VA, the department verfifies borrowers by providing eligibility certificates.

  • Piggy-back loans

    You may finance a down payment with a second mortgage that closes with the first. In most cases the first mortgage covers 80% of the purchase price and the "piggyback" funds 10%. Rather than the traditional 20 percent down payment, the buyer just has to pull together the remaining 10 percent.

  • Carry-Back loans

    We a seller carries back a second mortgage, the seller loans you part of his or her home equity. You would borrow the largest portion of the purchase price from a traditional mortgage lending institution and finance the remaining amount with the seller. Usually this type of second mortgage has a higher rate of interest.

No matter your strategy of pulling together down payment money, the thrill of reaching the goal of owning your own home will be just as great!

Want to discuss down payment options? Call us at (203) 729-6681.

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