Your Down Payment

Many folks who would like to buy a new house can qualify for a loan, but they can't afford a large down payment. Want to look into getting a new home, but aren't sure how to get together a down payment?

Slash the budget and build up savings. Turn your budget inside out to uncover extra money to save for your down payment. You may also decide to enroll in an automatic savings plan to have a portion of your pay automatically moved into your savings account. Some practical strategies to save additional funds include moving into housing that is less expensive, and staying local for your family vacation for a year or two.

Work a second job and sell items you do not need. Maybe you can find an additional job and save your earnings. Additionally, you can make an exhaustive list of items you may be able to sell. Broken gold jewelry can bring a good price from local jewelers. A closetful of small items can add up to a fair amount at a garage or tag sale. Also, you can think about selling any investments you hold.

Tap into your retirement funds. Check the parameters of your retirement plan. You can 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 ramifications, your obligation for repaying the money, and possible penalties for withdrawing early.

Ask for assistance from family members. First-time homebuyers somtimes receive down payment help from thoughtful family members who may be anxious to help them get into their own home. Your family members may be eager to help you reach the milestone of owning your own home.

Contact housing finance agencies. These agencies offer provisional mortgate loan programs- for moderate and low income homebuyers, buyers with an interest in rehabilitating a home in a specific area, and other groups as defined by the finance agency. Working with a housing finance agency, you can get a below market interest rate, down payment assistance and other advantages. These types of agencies may assist you with a reduced interest rate, help with your down payment, and offer other benefits. These non-profit agencies to build up community in certain places.

Research no-down and low-down mortgage loan programs.

• Federal Housing Administration (FHA) loans

  The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a critical part in helping low and moderate-income individuals get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids individuals in qualifying for mortgages. FHA offers mortgage insurance to the private lenders, ensuring the buyers are eligible for a loan. Down payment totals for FHA mortgages are below those with traditional mortgages, even though these loans have average rates of interest. The down payment can go as low as 3 percent and the closing costs might be covered by the mortgage.

• VA mortgages

  VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can receive a VA loan, which typically offers a competitive fixed rate of interest, no down payment, and limited closing costs. Even though the VA doesn't provide the mortgage loans, it does certify 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. Usually the piggyback loan takes care of 10 percent of the home's amount, and the first mortgage finances 80 percent. Rather than the traditional 20 percent down payment, the buyer just has to pull together the remaining 10 percent.

• Carry-Back loans

  In a "carry back" situation, the seller commits to loan you some of his home equity to assist you with your down payment funds. The buyer funds the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Typically you'll pay a slightly higher interest rate on the loan financed by the seller.

No matter how you gather down payment funds, the satisfaction of living in your own home will be just as great!

Need to talk about down payments? Call us: 5122916100.