Your Down Payment

Many buyers qualify for various loan programs, but they can't afford a large down payment. Here are a few straightforward methods that will help you get together your down payment

Tighten your belt and save. Look for ways to trim your expenses to put away money for a down payment. Also, you can look into bank programs in which a portion of your take-home pay is automatically deposited into a savings account each pay period. Some effective strategies to put together funds include moving into a residence that is less expensive, and skipping a year's vacation.

Sell items you don't really need and find a part-time job. Maybe you can find an additional job and save your earnings. You can also get creative about the things you could be able to put up for sale. You might have collectibles you can sell on an online auction, or household goods for a tag or garage sale. Also, you might want to consider selling any investments you own.

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

Ask for help from generous members of your family. Many buyers are sometimes lucky enough to get help with their down payment assistance from giving 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 goal of owning your own home.

Contact housing finance agencies. Special mortgage programs are offered to buyers in certain circumstances, such as low income purchasers or buyers planning to renovating houses in a specific place, among others. With the help of this kind of agency, you probably will be given an interest rate that is below market, down payment assistance and other incentives. These kinds of agencies may assist eligible homebuyers with a lower rate of interest, help with your down payment, and offer other advantages. These non-profit agencies exist to boost home ownership in certain neighborhoods.

Find out about low-down and no-down mortgage loans.

  • Federal Housing Administration (FHA) 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 to moderate-income Americans get mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids individuals in getting mortgages. FHA offers mortgage insurance to the private lenders, helping the buyers to become eligible for financing. Down payment sums for FHA mortgages are smaller than those of traditional mortgage loans, although these loans have current rates of interest. The required down payment may be as low as 3 percent and the closing costs could be included in the mortgage loan.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This special loan requires no down payment, has limited closing costs, and offers a competitive interest rate. Even though the VA does not actually finance the loans, it does certify eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close at the same time as the first. Often the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The borrower pays the remaining 10%, rather than come up with the typical 20% down payment.

  • Carry-Back loans

    In a "carry back" agreement, the seller commits to lend you some of his home equity to help you get your down payment money. In this scenario, you would finance the largest portion of the purchase price with a traditional mortgage lending institution and borrow the remainder from the seller. Typically, this form of second mortgage has higher interest.

The satisfaction will be the same, no matter which strategy you use to come up with your down payment. Your brand new home will be well worth it!

Want to discuss the best options for down payments? Give us a call at 4056158543.

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Executive Lending Group

A Division of 1st Capital Mortgage LLC

2272 36th Avenue NW
Norman, OK 73072