Your Down Payment
Lots of people who would like to buy a new home can easily qualify for a mortgage loan, but they don't have much to put up the standard down payment. Do you want to buy a new home, but aren't sure how you should get together your down payment?
Tighten your belt and save. Look for ways you can trim your expenses to set aside funds for a down payment. You could also try enrolling in an automatic savings plan to automatically have a set portion of your paycheck moved into savings. You would be wise to look into some big expenses in your spending history that you can give up, or trim, at least temporarily. For example, you might decide to move into less expensive housing, or stay local for your vacation.
Work a second job and sell items you don't need. Look for an additional job. This can be exhausting, but the temporary trial can help you get your down payment. You can also get creative about the things you can put up for sale. Maybe you have desirable items you can sell at an auction website, or quality household goods for a garage or tag sale. You might also explore what your investments will bring if sold.
Borrow your down payment from a retirement plan. Explore the details of your particular plan. Many people get down payment money from withdrawing from Individual Retirement Accounts or pulling funds out of 401(k) programs. Make sure to find out about the tax consequences, your obligation for repaying funds, and any penalties for withdrawing early.
Ask for help from members of your family. Many homebuyers somtimes receive down payment assistance from thoughtful family members who may be prepared to help them get into their own home. Your family members may be inclined to help you reach the goal of buying your first home.
Learn about housing finance agencies. These types of agencies provide special mortgate loan programs- for moderate and low income buyers, buyers with an interest in rehabilitating a residence in a targeted part of the city, and other particular types of buyers as specified by the finance agency. With the help of this type of agency, you probably will get a below market interest rate, down payment help and other benefits. These kinds of agencies can assist eligible buyers with a reduced rate of interest, get you your down payment, and offer other advantages. These non-profit agencies to build up community in particular places.
Learn about low-down and no-down mortgage loans.
- 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 helping low and moderate-income individuals get mortgages. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who need to qualify for mortgages.
FHA assists first-time buyers and others who may not be eligible for a typical loan on their own, by offering mortgage insurance to the lenders.
Interest rates for an FHA mortgage typically feature the current interest rate, but the down payment for an FHA loan are lower than those of conventional loans. The down payment may be as low as 3 percent while the closing costs may be financed in the mortgage loan.
- VA mortgage loans
VA loans are backed by the U.S. Department of Veterans Affairs. Veterens and service people can qualify for a VA loan, which generally offers a low interest rate, no down payment, and limited closing costs. While the VA does not issue the loans, it does certify eligibility to apply for a VA mortgage.
The feeling of accomplishment will be the same, no matter how you manage to come up with the down payment. Your new home will be well worth it!
Need to talk about your down payment? Call us: 812-945-4400.