Your Down Payment

Lots of people who are looking to purchase a new home can qualify for various loan programs, but they don't have a lot of cash to put up a down payment. Get started here

Cut expenses and save. Be on the look-out for ways to reduce your expenses to save toward a down payment. There are bank programs in which a specific portion of your take-home pay is automatically placed into savings every pay period. Some practical strategies to put together funds include moving into less expensive housing, and skipping your vacation for a year or two.

Sell things you do not need and find a second job. Try to get a second job. This can be exhausting, but the temporary difficulty can provide your down payment money. You can also get creative about the items you may be able to put up for sale. You may own collectibles you can sell on an auction website, or household items for a tag or garage sale. You can also research what any investments you have may sell for.

Tap into your retirement funds. Check the parameters of your particular program. Some people get down payment money by withdrawing from IRAs or borrowing from their 401(k) plans. Be sure you are knowledgable about any penalties, the way this may affect on income taxes, and repayment obligation.

Request a generous gift from your family. First-time homebuyers somtimes get help with their down payment help from thoughtful family members who are prepared to help them get into their first home. Your family members may be eager to help you reach the goal of having your own home.

Research housing finance agencies. Provisional loan programs are extended to buyers in specific situations, like low income buyers or people planning to remodel houses in a specific part of town, among others. With the help of this type of agency, you can get an interest rate that is below market, down payment assistance and other perks. These kinds of agencies can assist you with a reduced rate of interest, get you your down payment, and provide other assistance. The main mission of not-for-profit housing finance agencies is promoting the purchase of homes in targeted parts of the city.

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

  • Federal Housing Administration (FHA) mortgages

    The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays an important role in aiding low to moderate-income families get mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists individuals who wish to get home financing. FHA helps first-time homebuyers and others who may not be eligible for a typical mortgage by themselves, by offering mortgage insurance to the private lenders. Down payment requirements for FHA loans are less than those of conventional mortgages, although these mortgages have current interest rates. The down payment can go as low as 3 percent while the closing costs could be covered by the mortgage.

  • VA loans

    VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can receive a VA loan, which generally offers a competitive fixed interest rate, no down payment, and reduced closing costs. While it's true that the mortgage loans don't originate from the VA, the office certifies applicants by issuing eligibility certificates.

  • Piggy-back loans

    You may finance a down payment using a second mortgage that closes with the first. Generally the piggyback loan is for 10 percent of the home's amount, while the first mortgage finances 80 percent. Instead of the usual 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow a portion of the seller's home equity.. In this scenario, you would finance the largest portion of the purchase price with a traditional mortgage lender and finance the remainder with the seller. Often, this type of second mortgage has a higher rate of interest.

No matter your method of pulling together your down payment, the satisfaction of reaching the goal of living in your own home will be just as great!

Want to discuss down payments? Call us: 7186399500.

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Channel Mortgage LLC

Connecting the Dots to Home Ownership

55-25 69th Street 1st Floor
Maspeth, NY 11378-1806