Your Down Payment

Lots of buyers can easily qualify for several different kinds of mortgages, but they can't afford a large down payment. We have a few ideas

Cut expenses and save. Turn your budget upside-down to uncover ways you can cut expenses to go toward your down payment. You also might enroll in an automatic savings plan to automatically have a set amount from your paycheck moved into savings. You might look into some big expenses in your spending history that you can give up, or trim, at least temporarily. For example, you may decide to move into less expensive housing, or skip a family vacation.

Sell things you do not really need and find a second job. Try to find a second job. This can be exhausting, but the temporary trial can provide your down payment money. In addition, you can make a comprehensive inventory of things you may be able to sell. Unworn gold jewelry can bring a good amount from local jewelry stores. Maybe you own collectibles you can sell at an online auction, or quality household items for a garage or tag sale. Also, you can consider selling any investments you hold.

Tap into your retirement funds. Research the specifics of your individual plan. It is possible to borrow funds from a 401(k) for a down payment or withdraw from an Individual Retirement Account. Be sure you are clear about any penalties, the way this will affect on your taxes, and repayment obligation.

Request a generous gift from your family. First-time homebuyers are often lucky enough to receive down payment help from thoughtful parents and other family members who may be anxious to help get them in their own home. Your family members may be inclined to help you reach the goal of buying your own home.

Contact housing finance agencies. Provisional mortgage programs are offered to buyers in certain circumstances, such as low income buyers or buyers planning to remodel homes in a specific place, among others. With the help of a housing finance agency, you probably will get a below market interest rate, down payment assistance and other incentives. These types of agencies can help eligible buyers with a lower rate of interest, help with your down payment, and offer other benefits. These non-profit programs were established to promote the value of homes in certain areas.

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

  • FHA loans

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in assisting low and moderate-income Americans get mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA helps first-time buyers and others who might not be eligible for a conventional mortgage on their own, by offering mortgage insurance to the private lenders. Down payment requirements for FHA loans are lower than those for traditional mortgages, even though these loans come with average rates of interest. The required down payment can go as low as three percent and the closing costs may be financed in the mortgage.

  • VA mortgage loans

    With a guarantee from the Department of Veterans Affairs, a VA loan qualifies veterens and service people. This particular loan requires no down payment, has reduced closing costs, and provides the advantage of a competitive interest rate. While it's true that the mortgage loans don't originate from the VA, the department certifies borrowers by providing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. Usually the piggyback loan takes care of 10 percent of the home's price, and the first mortgage covers 80 percent. Rather than the traditional 20 percent down payment, the homebuyer just has to cover the remaining 10 percent.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow part of the seller's home equity.. The buyer funds most of the purchase price with a traditional mortgage program and finances the remaining funds with the seller. Usually you will pay a slightly higher rate on the loan from the seller.

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

Need to talk about your down payment? Call us: (513) 713-1515.

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