Your Down Payment

Many buyers can qualify for various loan programs, but they don't have a large sum of cash to pay the standard down payment. Get started here

Cut expenses and save. Look for ways you can reduce your monthly expenses to save toward a down payment. You might also try enrolling in an automatic savings plan to have a portion of your payroll automatically transferred into your savings account. Some effective ways to build up funds include moving into housing that is less expensive, and staying home for your family vacation this year.

Sell items you do not really need and get a second job. Maybe you can get an additional job to get your down payment money. Additionally, you can make a comprehensive list of things you may be able to sell. Unused gold jewelry can bring a good amount from local jewelers. Maybe you own desirable items you can sell on an online auction, or household goods for a garage or tag sale. Also, you might want to think about selling any investments you own.

Tap into your retirement funds. Research the specifics for your particular plan. You can borrow money from a 401(k) for you down payment or perform a withdrawal from an Individual Retirement Account. You will want to make sure you know about any penalties, the way this may affect on your taxes, and repayment terms.

Ask for assistance from generous members of your family. First-time buyers are often fortunate enough to get down payment help from giving parents and other family members who may be willing to help get them in their first home. Your family members may be eager to help you reach the goal of owning your first home.

Research housing finance agencies. Special loan programs are offered to buyers in specific circumstances, like low income purchasers or people planning to renovating homes in a certain area, among others. With the help of a housing finance agency, you can be given a below market interest rate, down payment assistance and other advantages. These types of agencies can help you with a reduced rate of interest, get you your down payment, and provide other assistance. These non-profit programs to boost home ownership in particular areas.

Find out about low-down and no-down mortgages.

  • FHA mortgage loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in helping low and moderate-income Americans qualify for mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals in getting home financing. FHA helps first-time buyers and others who might not be able to qualify for a conventional mortgage loan by themselves, by providing mortgage insurance to the lenders. Interest rates for an FHA loan are usually the going interest rate, while the down payment with an FHA mortgage will be below those of conventional loans. The down payment can be as low as three percent and the closing costs can be financed in the mortgage.

  • VA mortgage loans

    With a guarantee from the Department of Veterans Affairs, a VA loan is offered to service people and veterans. This specialized loan requires no down payment, has reduced closing costs, and offers a competitive rate of interest. Even though the VA doesn't finance the mortgage loans, it does issue a certificate of eligibility to qualify for a VA loan.

  • Piggy-back loans

    A piggy-back loan is 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 price, while the first mortgage finances 80 percent. The homebuyer covers the remaining 10%, rather than having to put together the typical 20% down payment.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow a portion of the seller's home equity.. You would borrow the majority of the purchase price from a traditional mortgage lender and borrow the remaining amount from the seller. Usually you'll pay a slightly higher interest rate on the loan from the seller.

The satisfaction will be the same, no matter which method you use to put together the down payment. Your new home will be your reward!

Need to talk about your down payment? Give us a call at 7133252099.

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