Your Down Payment

Many people who are looking to purchase a new house can easily qualify for a mortgage loan, but they don't have a lot of cash to pay the standard down payment. Get started here

Slash your budget and build up savings. Be on the look-out for ways to reduce your expenditures to put away money for a down payment. Also, you can look into bank programs in which a specific portion of your take-home pay is automatically transferred into a savings account each pay period. Some practical ways to save additional funds include moving into housing that is less expensive, and staying local for your vacation for a year or two.

Work more and sell things you don't need. Maybe you can find a second job and build up your earnings. You can also get serious about the possessions you really need and the items you migh be able to put up for sale. Multiple small items might add up to a nice sum at a garage or tag sale. You can also research what any investments you own may bring if sold.

Borrow funds from your retirement plan. Investigate the parameters of your particular program. Some homebuyers get down payment money from withdrawing funds from IRAs or borrowing from 401(k) programs. Make sure you comprehend the tax ramifications, repayment terms, and penalties for withdrawing early.

Ask for help from generous members of your family. Many buyers are often fortunate enough to get down payment help from giving parents and other family members who may be anxious to help get them in their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your own home.

Research housing finance agencies. These agencies provide provisional mortgate loan programs- for moderate and low income buyers, buyers interested in sprucing up a residence within a particular area, and additional groups as defined by each agency. With the help of this type of agency, you can receive an interest rate that is below market, down payment assistance and other advantages. These kinds of agencies may help eligible homebuyers with a lower rate of interest, get you your down payment, and provide other assistance. These non-profit agencies to promote the value of homes in particular neighborhoods.

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

  • Federal Housing Administration (FHA) mortgages

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital part in assisting low and moderate-income families get mortgages. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids individuals who wish to qualify for mortgage loans. FHA provides mortgage insurance to the private lenders, enabling buyers who might not qualify for a typical mortgage loan, to get a mortgage. Interest rates for an FHA mortgage are usually the current interest rate, but the down payment amounts for an FHA loan will be lower than those of conventional loans. The down payment can be as low as three percent and the closing costs could be covered by the mortgage.

  • VA loans

    VA loans are backed by the U.S. Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which generally offers a low rate of interest, no down payment, and limited closing costs. Even though the loans don't originate from the VA, the office verfifies borrowers by issuing eligibility certificates.

  • Piggy-back loans

    You may fund a down payment through a second mortgage that closes at the same time as the first. Usually the piggyback loan is for 10 percent of the purchase amount, while the first mortgage finances 80 percent. In contrast to the traditional 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

  • Carry-Back loans

    In a "carry back" mortgage, the seller commits to lend you some of his home equity to help you get your down payment money. The buyer funds most of the purchase price with a traditional mortgage program and borrows the remainder from the seller. Typically you'll pay a somewhat higher interest rate on the loan financed by the seller.

The satisfaction will be the same, no matter how you manage to come up with the down payment. Your brand new home will be your reward!

Need to talk about down payments? Call us at (718) 639-9500.

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