Your Down Payment

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Lots of borrowers qualify for several different kinds of mortgages, but they can't afford a large down payment. Do you want to look into getting a new house, but aren't sure how to get together a down payment?

Tighten your belt and save. Be on the look-out for ways to trim your monthly expenses to set aside funds for a down payment. You also could enroll in an automatic savings plan to automatically have a predetermined portion of your take-home pay deposited into savings. You could look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you might decide to move into less expensive housing, or skip a family vacation.

Work more and sell items you do not need. Look for a second job. This can be exhausting, but the temporary trial can help you get your down payment. Additionally, you can make a comprehensive inventory of items you may be able to sell. Unused gold jewelry can be sold at local jewelers. Maybe you own collectibles you can put up for sale at an auction website, or household items for a tag or garage sale. Also, you can look into selling any investments you hold.

Borrow funds from a retirement plan. Research the details for your particular plan. It is possible to pull out money from a 401(k) plan for a down payment or perform a withdrawal from an Individual Retirement Account. Make sure you understand the tax consequences, your obligation for repayment, and possible penalties for withdrawing early.

Ask for help from generous members of your family. First-time buyers sometimes get help with their down payment help from giving family members who are eager to help get them in their first home. Your family members may be inclined to help you reach the goal of buying your first home.

Contact housing finance agencies. These agencies provide special loan programs for low and moderate-income homebuyers, buyers with an interest in renovating a house within a particular part of the city, and other specific kinds of buyers as specified by the finance agency. With the help of a housing finance agency, you may be given an interest rate that is below market, down payment assistance and other advantages. These kinds of agencies can help you with a lower interest rate, get you your down payment, and offer other advantages. These non-profit agencies were formed to promote home ownership in particular areas.

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

• Federal Housing Administration (FHA) 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 get mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time homebuyers and others who would not be able to qualify for a typical loan on their own, by offering mortgage insurance to private lenders. Down payment totals for FHA loans are below those for traditional mortgages, even though these loans hold average rates of interest. The required down payment can go as low as three percent and the closing costs can be covered by the mortgage loan.

• VA mortgages

  Guaranteed by the Department of Veterans Affairs, a VA loan is offered to veterans and service people. This specialized loan does not require a down payment, has limited closing costs, and provides a competitive interest rate. While the mortgages don't originate from the VA, the office verifies applicants by providing eligibility certificates.

• Piggy-back loans

  A piggy-back loan is a second mortgage that you close with the first. Most of the time, the piggyback loan is for 10 percent of the home's price, while the first mortgage finances 80 percent. Rather than the usual 20 percent down payment, the buyer just has to cover the remaining 10 percent.

• Carry-Back loans

  We a seller carries back a second mortgage, the you borrow part of the seller's home equity.. The buyer funds most of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Usually you'll pay a slightly higher rate on the loan from the seller.

Need to talk about down payment options? Give us a call at 469.450.9453.