Your Down Payment

Many folks who are looking to buy a new home can qualify for various loan programs, but they can't afford a large down payment. Want to buy a new house, but don't know how you should put together a down payment?

Cut expenses and save. Scrutinize the budget to find extra money to go toward your down payment. Also, you can look into bank programs in which a specific portion of your take-home pay is automatically deposited into savings each pay period. Some practical strategies to build up funds include moving into a residence that is less expensive, and skipping your family vacation for a year or two.

Work a second job and sell items you don't need. Maybe you can find an additional job to get your down payment money. Additionally, you can make an exhaustive inventory of things you can sell. Broken gold jewelry can be sold at local jewelry stores. A closetful of small things can add up to a nice sum at a garage or tag sale. Also, you might want to think about selling any investments you own.

Tap into retirement funds. Explore the specifics for your individual plan. It is possible to borrow funds from a 401(k) plan for you down payment or make a withdrawal from an IRA. Be sure you understand the tax consequences, your obligation for repaying funds, and any penalties for withdrawing early.

Ask for assistance from family members. Many homebuyers somtimes receive down payment assistance from giving parents and other family members who are prepared to help get them in their own home. Your family members may be inclined to help you reach the milestone of buying your first home.

Research housing finance agencies. These agencies offer provisional loan programs for moderate and low income buyers, buyers with an interest in sprucing up a house within a targeted part of the city, and additional specific types of buyers as defined by each finance agency. With the help of this type of agency, you can get a below market interest rate, down payment assistance and other benefits. These kinds of agencies may help eligible buyers with a lower rate of interest, get you your down payment, and offer other assistance. These non-profit programs were formed to promote home ownership in particular areas.

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

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), which is inside the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low to moderate-income individuals qualify for mortgages. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who wish to get mortgages. FHA provides mortgage insurance to private lenders, enabling homebuyers who might not be eligible for a traditional mortgage loan, to obtain a mortgage. Interest rates with an FHA mortgage are generally the current interest rate, while the down payment with an FHA loan are lower than those of conventional loans. Closing costs can be included in the mortgage, and your down payment might be as low as 3 percent of the total.

  • VA mortgages

    VA loans are backed by the Department of Veterans Affairs. Veterens and service people can get a VA loan, which typically offers a reasonable fixed rate of interest, no down payment, and limited closing costs. Although the VA does not provide the mortgage loans, it does certify eligibility to apply for a VA loan.

  • Piggy-back loans

    You may fund a down payment through a second mortgage that closes along with the first. Most of the time, the piggyback loan is for 10 percent of the purchase amount, while the first mortgage finances 80 percent. Rather than the usual 20 percent down payment, the buyer will just have to cover the remaining 10 percent.

  • Carry-Back loans

    With a carry-back mortgage, the seller loans you part of his or her equity. The buyer finances the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Usually you will pay a slightly higher rate with the loan financed by the seller.

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

Need to talk about the best options for down payments? Give us a call: 7186399500.

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Channel Mortgage LLC

Connecting the Dots to Home Ownership

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