Your Down Payment

Many borrowers 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 get together your down payment

Tighten your belt and save. Scrutinize your budget to discover extra money to save for your down payment. There are bank programs in which a portion of your take-home pay is automatically deposited into savings each pay period. You might look into some big expenses in your budget that you can give up, or trim, at least temporarily. For example, you might decide to move into less expensive housing, or skip a vacation.

Sell things you do not really need and get a second job. Maybe you can find a second job to get your down payment money. You can also get creative about the things you may be able to sell. You may have collectibles you can sell at an auction website, or quality household goods for a tag or garage sale. You can also look into what your investments could sell for.

Borrow funds from a retirement plan. Research the details for your individual plan. You can borrow funds from a 401(k) plan for you down payment or withdraw from an Individual Retirement Account. Be sure to ask your plan representative about the tax ramifications, your obligation for repaying the money, and possible penalties for withdrawing early.

Request a gift from your family. Many homebuyers are often lucky enough to receive help with their down payment help from gracious family members who may be anxious to help get them in their first home. Your family members may be pleased to help you reach the goal of having your own home.

Contact housing finance agencies. These types of agencies provide provisional mortgate loan programs- for moderate and low income buyers, buyers with an interest in rehabilitating a house within a specific area, and additional specific kinds of buyers as specified by the agency. Financing through this type of agency, you probably will get an interest rate that is below market, down payment help and other benefits. Housing finance agencies can assist you with a lower interest rate, help with your down payment, and provide other assistance. These non-profit agencies exist to promote home ownership in particular areas.

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

• FHA mortgage loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a critical role in assisting low to moderate-income families qualify for mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time buyers and others who would not be eligible for a typical loan by themselves, by offering mortgage insurance to private lenders. Down payment requirements for FHA loans are less than those of traditional mortgages, even though these loans hold current interest rates. The required down payment can go as low as 3 percent and the closing costs may be financed in the mortgage.

• VA mortgage loans

  Guaranteed by the Department of Veterans Affairs, a VA loan is offered to veterens and service people. This specialized loan requires no down payment, has mimimal closing costs, and provides a competitive interest rate. While it's true that the mortgages don't originate from the VA, the office certifies borrowers by issuing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close at the same time as the first. Most of the time, the piggyback loan is for 10 percent of the purchase price, while the first mortgage finances 80 percent. In contrast to the usual 20 percent down payment, the buyer will just have to cover the remaining 10 percent.

• Carry-Back loans

  In a "carry back" situation, the seller commits to lend you a portion of his own equity to help you get your down payment funds. The buyer finances the majority of the purchase price with a traditional mortgage program and borrows the remaining funds from the seller. Usually you'll pay a slightly higher interest rate on the loan from the seller.

No matter how you gather your down payment, the satisfaction of living in your own home will be just as great!

Need to talk about the best options for down payments? Give us a call at 7068605514.