Your Down Payment

Lots of buyers can easily qualify for several different kinds of mortgages, but they can't afford a large down payment. Get started here

Tighten your belt and save. Turn your budget inside out to find ways you can cut expenses to go toward your down payment. There are bank programs through which some of your take-home pay is automatically deposited into a savings account each pay period. Some practical approaches to save additional 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. Maybe you can get a second job and build up your earnings. You can also seriously consider the possessions you actually need and the things you could be able to put up for sale. Maybe you own collectibles you can put up for sale on an online auction, or quality household items for a tag or garage sale. You could also look into what your investments could sell for.

Borrow from a retirement plan. Check the provisions of your particular plan. It is possible to pull out funds from a 401(k) for a down payment or withdraw from an Individual Retirement Account. Be sure you know about any penalties, the effect this will have on your income taxes, and repayment terms.

Request a gift from your family. Many homebuyers are sometimes fortunate enough to get help with their down payment help from thoughtful parents and other family members who are prepared to help get them in their own home. Your family members may be inclined to help you reach the goal of having your first home.

Research housing finance agencies. Special mortgage programs are given to buyers in certain situations, like low income homebuyers or homebuyers looking to remodel houses in a specific neighborhood, among others. With the help of a housing finance agency, you may be given an interest rate that is below market, down payment assistance and other advantages. Housing finance agencies can help you with a reduced interest rate, get you your down payment, and provide other advantages. These non-profit agencies were established to boost the value of homes in specific areas.

Learn about low-down and no-down mortgage loans.

• FHA mortgage loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in assisting low to moderate-income buyers qualify for mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA helps first-time homebuyers and others who might not be eligible for a traditional mortgage loan on their own, by offering mortgage insurance to the lenders. Interest rates with an FHA mortgage normally feature the current interest rate, while the down payment amounts with an FHA mortgage are less than those of conventional loans. The required down payment can go as low as three percent and the closing costs can be included in the mortgage.

• VA loans

  With a guarantee from the Department of Veterans Affairs, a VA loan is offered to veterens and service people. This specialized loan requires no down payment, has reduced closing costs, and provides the advantage of a competitive rate of interest. Although the VA doesn't provide the mortgages, it does issue a certificate of eligibility to qualify for a VA loan.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close with the first. Often the first mortgage is for 80% of the purchase price and the "piggyback" funds 10%. The borrower pays the remaining 10%, instead of come up with the typical 20% down payment.

• Carry-Back loans

  In a "carry back" situation, the seller agrees to loan you a portion of his own equity to assist you with your down payment funds. The buyer finances most of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Typically you will pay a slightly higher rate on the loan financed by the seller.

Want to discuss your down payment? Give us a call: 9162758775.