Your Down Payment

Many borrowers qualify for several different kinds of mortgages, but they can't afford a large down payment. Below are a few methods that will help you put together your down payment

Slash the budget and build up savings. Be on the look-out for ways to trim your monthly expenses to save toward a down payment. Also, you can look into bank programs in which a portion of your paycheck is automatically deposited into savings each pay period. Some practical strategies to save additional funds include moving into housing that is less expensive, and skipping a year's vacation.

Sell items you do not really need and get a second job. Try to find an additional job. This can be rough, but the temporary trial can help you get your down payment. In addition, you can put together a comprehensive inventory of things you may be able to sell. Broken gold jewelry can be sold at local jewelers. You may own collectibles you can sell on an online auction, or quality household items for a tag or garage sale. You could also explore what any investments you have may bring if sold.

Borrow funds from a retirement plan. Check the provisions of your particular plan. You can take out funds from a 401(k) for you down payment or withdraw from an Individual Retirement Account. Be sure you know about any penalties, the way this could affect on taxes, and repayment terms.

Ask for a gift from family. First-time buyers somtimes receive help with their down payment assistance from giving parents and other family members who may be willing to help them get into their own home. Your family members may be inclined to help you reach the goal of buying your own home.

Research housing finance agencies. Provisional mortgage programs are extended to buyers in certain situations, like low income purchasers or buyers planning to improve houses in a specific part of town, among others. Working with a housing finance agency, you may be given a below market interest rate, down payment assistance and other perks. Housing finance agencies may assist eligible homebuyers with a reduced rate of interest, help with your down payment, and provide other benefits. These non-profit agencies were established to build up community in particular neighborhoods.

Explore no-down and low-down mortgage loans.

• Federal Housing Administration (FHA) mortgages

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in aiding low to moderate-income Americans get mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time buyers and others who might not be eligible for a conventional mortgage loan on their own, by offering mortgage insurance to lenders. Down payment amounts for FHA loans are lower than those with conventional mortgages, even though these loans hold average interest rates. Closing costs might be covered by the mortgage, and the down payment can be as low as 3 percent of the purchase price.

• VA mortgages

  VA loans are guaranteed by the Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which usually offers a competitive interest rate, no down payment, and reduced closing costs. Although the mortgages are not actually financed by the VA, the office certifies applicants by issuing eligibility certificates.

• Piggy-back loans

  You may finance a down payment with a second mortgage that closes at the same time as the first. Often the first mortgage is for 80% of the purchase price and the "piggyback" is for 10%. The homebuyer covers the remaining 10%, rather than having to put together the usual 20% down payment.

• Carry-Back loans

  With a carry-back mortgage, the you borrow part of the seller's home equity.. The buyer funds the majority of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Often, this form of second mortgage has a higher rate of interest.

Need to talk about the best options for down payments? Give us a call: 866-300-1550.