Your Down Payment

Lots of buyers qualify for several different kinds of mortgages, but they can't afford a large down payment. Here are a few methods that will help you put together your down payment

Tighten your belt and save. Look for ways to trim your expenditures to put away money for a down payment. You could also try enrolling in an automatic savings plan to automatically have a set portion of your paycheck deposited into your savings account. Some practical approaches to build up funds include moving into less expensive housing, and skipping a year's vacation.

Sell items you do not really need and find a part-time job. Try to get a second job. This can be exhausting, but the temporary difficulty can provide your down payment money. You can also get creative about the items you can sell. A closetful of small things could add up to a nice sum at a garage or tag sale. You might also explore what any investments you hold could bring if sold.

Borrow your down payment from your retirement plan. Explore the details of your particular plan. It is possible to take out money from a 401(k) plan for a down payment or withdraw from an Individual Retirement Account. Make sure you comprehend the tax ramifications, your obligation for repayment, and penalties for withdrawing early.

Ask for assistance from generous members of your family. Many homebuyers are sometimes fortunate enough to get down payment assistance from gracious family members who are anxious to help them get into their first home. Your family members may be happy at the chance to help you reach the goal of buying your own home.

Contact housing finance agencies. These agencies offer special mortgate loan programs- for moderate and low income buyers, buyers with an interest in rehabilitating a home in a specific part of the city, and additional groups as defined by the finance agency. With the help of this kind of agency, you probably will receive a below market interest rate, down payment assistance and other perks. These types of agencies may help you with a lower interest rate, help with your down payment, and offer other benefits. The primary purpose of non-profit housing finance agencies is to promote residence ownership in certain areas.

Learn about low-down and no-down mortgages.

• Federal Housing Administration (FHA) mortgages

  The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low and moderate-income Americans get mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals in qualifying for home financing. FHA helps first-time buyers and others who would not be able to qualify for a conventional loan by themselves, by offering mortgage insurance to the private lenders. Interest rates for an FHA mortgage generally feature the current interest rate, but the down payment requirements with an FHA mortgage will be below those of conventional loans. The down payment can go as low as 3 percent while the closing costs could be covered by the mortgage loan.

• VA loans

  VA loans are guaranteed by the Department of Veterans Affairs. Service persons and veterans can benefit from a VA loan, which typically offers a reasonable rate of interest, no down payment, and limited closing costs. While the mortgage loans don't originate from the VA, the office certifies applicants by providing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that closes at the same time as the first. In most cases the first mortgage covers 80% of the purchase amount and the "piggyback" funds 10%. Instead of the usual 20 percent down payment, the buyer just has to cover the remaining 10 percent.

• Carry-Back loans

  With a carry-back mortgage, the you borrow a portion of the seller's home equity.. You would finance the majority of the purchase price with a traditional mortgage lending institution and finance the remainder with the seller. Usually you'll pay a somewhat higher rate on the loan from the seller.

Want to discuss down payment options? Give us a call: 2037296681.