Your Down Payment

Many borrowers qualify for a mortgage loan, but they can't afford a large down payment. Want to look into getting a new house, but aren't sure how to get together a down payment?

Tighten your belt and save. Look for ways you can trim your expenditures to save toward a down payment. You could also try enrolling in an automatic savings plan at your bank to have a percentage of your pay automatically moved into your savings account. Some practical approaches to put together funds include moving into less expensive housing, and staying home for your vacation this year.

Work a second job and sell items you don't need. Look for an additional job. This can be rough, but the temporary difficulty can help you get your down payment. In addition, you can put together a comprehensive inventory of things you can sell. Unused gold jewelry can bring a good amount from local jewelers. Maybe you have desirable items you can put up for sale at an auction website, or household goods for a garage or tag sale. Also, you might want to look into selling any investments you hold.

Tap into retirement funds. Explore the specifics for your particular plan. Many people get down payment money from withdrawing funds from IRAs or taking money out of 401(k) programs. Be sure to ask your plan representative about the tax ramifications, repayment terms, and penalties for withdrawing early.

Ask for assistance from family members. First-time homebuyers somtimes get help with their down payment help from giving parents and other family members who may be willing to help get them in their own home. Your family members may be eager to help you reach the goal of having your first home.

Learn about housing finance agencies. These types of agencies offer special mortgage programs to low and moderate-income homebuyers, buyers with an interest in renovating a residence within a targeted part of the city, and other specific types of buyers as defined by each agency. With the help of a housing finance agency, you probably will be given a below market interest rate, down payment assistance and other benefits. Housing finance agencies may assist eligible buyers with a reduced rate of interest, get you your down payment, and offer other benefits. The main goal of non-profit housing finance agencies is to boost residential ownership in targeted parts of the city.

Learn about low-down and no-down mortgages.

  • FHA mortgage loans

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low to moderate-income families qualify for mortgage loans. 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 private lenders, making the buyers eligible for a loan. Interest rates for an FHA mortgage are usually the going interest rate, but the down payment with an FHA loan are less than those of conventional loans. Closing costs may be covered by the mortgage, while your down payment can be as low as 3% of the purchase price.

  • VA mortgage loans

    With a guarantee from the Department of Veterans Affairs, a VA loan assists service people and veterans. This particular loan requires no down payment, has mimimal closing costs, and offers a competitive interest rate. While the VA does not actually finance the loans, it does certify eligibility to qualify for a VA loan.

  • Piggy-back loans

    You may fund a down payment with a second mortgage that closes at the same time as the first. Most of the time, the piggyback loan takes care of 10 percent of the home's amount, and the first mortgage finances 80 percent. Instead of the traditional 20 percent down payment, the buyer 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.. The buyer finances the majority of the purchase price with a traditional mortgage program and borrows the remainder from the seller. Typically you'll pay a slightly higher interest rate with the loan financed by the seller.

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

Want to discuss down payments? Call us at 5122916100.

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Company NMLS # 303440

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7901 Cameron Road Bldg 2 Ste 246
Austin, TX 78754