Your Down Payment

Many buyers qualify for a loan, but they don't have a large sum of cash to pay the standard down payment. Here are a few straightforward methods that will help you put together your down payment

Tighten your belt and save. Scrutinize the budget to discover ways you can cut expenses to save for your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your take-home pay moved into a savings account. You could look into some big expenses in your spending history that you can give up, or trim, at least temporarily. For example, you may move into less expensive housing, or skip a family vacation.

Sell items you do not need and get a second job. Look for an additional job. This can be exhausting, but the temporary trial can provide your down payment money. In addition, you can put together a comprehensive list of items you can sell. Unworn gold jewelry can bring a good price from local jewelry stores. Multiple small things might add up to a fair amount at a garage or tag sale. You could also research what any investments you have could bring if sold.

Borrow your down payment from a retirement plan. Research the details of your individual plan. Some people get down payment money from withdrawing from their IRAs or getting funds out of their 401(k) plans. You will need to ensure you are knowledgable about any penalties, the way this may affect on your taxes, and repayment obligation.

Request a gift from family. Many buyers somtimes receive down payment assistance from caring parents and other family members who are anxious to help get them in their first home. Your family members may be willing to help you reach the milestone of having your first home.

Research housing finance agencies. These agencies offer special mortgage programs to low and moderate-income homebuyers, buyers interested in remodeling a home within a specific part of the city, and other groups as defined by each finance agency. Working with a housing finance agency, you probably will get a below market interest rate, down payment help and other advantages. These types of agencies can assist eligible homebuyers with a lower rate of interest, get you your down payment, and provide other advantages. These non-profit agencies to build up community in specific neighborhoods.

Explore no-down and low-down mortgage loans.

• Federal Housing Administration (FHA) loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low and moderate-income buyers get mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA offers mortgage insurance to the private lenders, ensuring the buyers are eligible for financing. Interest rates for an FHA mortgage are typically the market interest rate, but the down payment with an FHA mortgage are below those of conventional loans. Closing costs can be financed in the mortgage, and the down payment might be as low as 3 percent of the total amount.

• VA mortgages

  Guaranteed by the Department of Veterans Affairs, a VA loan assists veterens and service people. This specialized loan does not require a down payment, has reduced closing costs, and offers a competitive rate of interest. Even though the VA does not actually finance the mortgage loans, it does issue a certificate of eligibility to qualify 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. Most of the time, the first mortgage covers 80% of the cost of the home and the "piggyback" is for 10%. Instead of the usual 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. The buyer funds the majority of the purchase price with a traditional mortgage program and borrows the remaining funds from the seller. Typically, this kind of second mortgage has a higher rate of interest.

Need to talk about down payment options? Call us: 4056158543.