Your Down Payment

Lots of borrowers can qualify for a mortgage loan, but they don't have much to pay the standard down payment. Here are a few straightforward ways to put together your down payment

Tighten your belt and save. Turn your budget inside out to find ways you can cut expenses to save for your down payment. You also could enroll in an automatic savings plan at your bank to automatically have a predetermined portion of your take-home pay deposited into savings. Some effective approaches to put together funds include moving into less expensive housing, and skipping a year's vacation.

Work a second job and sell things you don't need. Perhaps you can find an additional job and build up your earnings. Additionally, you can make a comprehensive list of items you can sell. Broken gold jewelry can bring a good price from local jewelry stores. You might own collectibles you can put up for sale at an online auction, or quality household items for a tag or garage sale. You could also explore what your investments will sell for.

Borrow your down payment from a retirement plan. Research the specifics for your particular plan. You may borrow money from a 401(k) plan for you down payment or withdraw from an Individual Retirement Account. Make sure to find out about the tax consequences, repayment terms, and penalties for withdrawing early.

Request a gift from family. First-time buyers somtimes get down payment help from caring parents and other family members who are able to help them get into their own home. Your family members may be willing to help you reach the goal of owning your own home.

Research housing finance agencies. Provisional mortgage programs are extended to homebuyers in certain situations, like low income purchasers or people planning to remodel houses in a particular area, among others. With the help of a housing finance agency, you may receive 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, get you your down payment, and provide other advantages. These non-profit programs were formed to build up community in certain places.

Learn about low-down and no-down mortgages.

• FHA mortgages

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a significant part in helping low and moderate-income buyers get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals in qualifying for home financing. FHA offers mortgage insurance to private lenders, enabling homebuyers who might not qualify for a traditional loan, to obtain a mortgage. Interest rates for an FHA loan normally feature the going interest rate, but the down payment amounts with an FHA loan will be lower than those of conventional loans. Closing costs might be included in the mortgage, and your down payment can be as low as 3 percent of the total.

• VA loans

  VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can qualify for a VA loan, which generally offers a low rate of interest, no down payment, and reduced closing costs. While it's true that the mortgages aren't actually issued by the VA, the department certifies applicants by issuing eligibility certificates.

• Piggy-back loans

  You may finance your down payment using a second mortgage that closes along with the first. Generally the first mortgage covers 80% of the purchase price and the "piggyback" is for 10%. The borrower pays the remaining 10%, instead of putting the typical 20% down payment.

• Carry-Back loans

  We a seller carries back a second mortgage, the you borrow part of the seller's home equity.. The buyer funds most of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Usually you will pay a somewhat higher rate with the loan from the seller.

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