Your Down Payment

Many people who would like to buy a new home can easily qualify for a loan, but they can't afford a large down payment. Do you want to buy a new home, but aren't sure how to put together a down payment?

Tighten your belt and save. Be on the look-out for ways to trim your monthly expenditures to put away money for a down payment. You could also try enrolling in an automatic savings plan at your bank to have a portion of your pay automatically deposited into savings. You could look into some big expenses in your spending history that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or skip a family vacation.

Work more and sell things you do not need. Maybe you can get an additional job to get your down payment money. Additionally, you can make a comprehensive list of items you may be able to sell. Unused gold jewelry can bring a good price from local jewelry stores. Maybe you have collectibles you can sell on an online auction, or quality household items for a tag or garage sale. You might also research what your investments may bring if sold.

Tap into retirement funds. Research the details for your individual plan. Some people get down payment money from withdrawing what they need from their Individual Retirement Accounts or taking money out of 401(k) programs. Be sure you comprehend the tax ramifications, repayment terms, and possible early withdrawal penalties.

Request a gift from your family. Many homebuyers somtimes get help with their down payment assistance from giving parents and other family members who may be able to help get them in their own home. Your family members may be willing to help you reach the goal of buying your own home.

Research housing finance agencies. These agencies offer special mortgate loan programs- for moderate and low income homebuyers, buyers with an interest in renovating a house within a particular area, and other particular kinds of buyers as defined by each finance agency. Working with a housing finance agency, you can get a below market interest rate, down payment help and other advantages. Housing finance agencies may assist you with a lower interest rate, get you your down payment, and provide other assistance. These non-profit programs were established to promote home ownership in specific places.

Learn about low-down and no-down mortgages.

• FHA loans

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a vital role in aiding low and moderate-income individuals 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 with an FHA mortgage are usually the current interest rate, but the down payment amounts for an FHA loan will be below those of conventional loans. The required down payment may be as low as 3 percent and the closing costs may be financed in the mortgage.

• VA mortgages

  VA loans are guaranteed by the Department of Veterans Affairs. Veterens and service people can get a VA loan, which generally offers a reasonable rate of interest, no down payment, and minimal closing costs. While the mortgages aren't actually provided by the VA, the office certifies borrowers by providing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close at the same time as the first. Usually the piggyback loan is for 10 percent of the home's amount, and the first mortgage covers 80 percent. In contrast to the usual 20 percent down payment, the homebuyer will just have to cover the remaining 10 percent.

• Carry-Back loans

  We a seller carries back a second mortgage, the you borrow a portion of the seller's home equity.. You would borrow the largest portion of the purchase price from a traditional mortgage lender and borrow the remaining amount from the seller. Usually you'll pay a somewhat higher rate with the loan financed by the seller.

No matter your method of pulling together your down payment funds, the thrill of owning your own home will be just as sweet!

Want to discuss the best options for down payments? Call us: 5752581316.