Your Down Payment

Lots of buyers can easily qualify for various loan programs, but they can't afford a large down payment. Get started here

Tighten your belt and save. Look for ways you can reduce your expenditures to put away money for a down payment. There are bank programs through which a specific portion of your take-home pay is automatically placed into savings every pay period. You might look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you might move into less expensive housing, or skip a vacation.

Sell things you don't need and find a second job. Try to find an additional job. This can be exhausting, but the temporary trial can help you get your down payment. You can also get creative about the things you migh be able to put up for sale. Maybe you own desirable items you can put up for sale on an online auction, or quality household items for a tag or garage sale. You can also look into what your investments could bring if sold.

Borrow from your retirement funds. Research the details for your particular plan. You may pull out money from a 401(k) for a down payment or withdraw from an Individual Retirement Account. You will need to be sure you understand about any penalties, the effect this may have on income taxes, and repayment obligation.

Ask for help from generous family members. First-time homebuyers are sometimes lucky enough to receive down payment help from thoughtful parents and other family members who may be able to help get them in their first home. Your family members may be happy at the chance to help you reach the goal of owning your own home.

Learn about housing finance agencies. Special mortgage programs are provided to buyers in specific circumstances, like low income homebuyers or buyers looking to remodel houses in a certain part of town, among others. Working with a housing finance agency, you may be given an interest rate that is below market, down payment help and other incentives. These types of agencies can assist eligible buyers with a lower interest rate, help with your down payment, and provide other advantages. The main purpose of not-for-profit housing finance agencies is build up the purchase of homes in particular places.

Explore no-down and low-down mortgage loans.

• Federal Housing Administration (FHA) mortgages

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in helping low and moderate-income buyers qualify for mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to the private lenders, enabling buyers who will not be eligible for a typical mortgage, to obtain financing. Down payment sums for FHA loans are less than those of typical mortgages, although these mortgages come with average interest rates. Closing costs can be financed within the mortgage, while your down payment might be as low as 3% of the total.

• VA mortgage loans

  VA loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which generally offers a low interest rate, no down payment, and limited closing costs. Although the loans don't originate from the VA, the department certifies borrowers by issuing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that closes at the same time as the first. Generally the piggyback loan takes care of 10 percent of the home's amount, and the first mortgage finances 80 percent. The homebuyer covers the remaining 10%, instead of putting the usual 20% down payment.

• Carry-Back loans

  With a carry-back mortgage, the you borrow a portion of the seller's home equity.. In this scenario, you would finance the majority of the purchase price with a traditional lending institution and finance the remaining amount with the seller. Typically you'll pay a slightly higher rate on the loan financed by the seller.

Want to discuss down payment options? Call us at 4056158543.