Your Down Payment

Lots of borrowers can qualify for several different kinds of mortgages, but they don't have a lot of money to pay a down payment. Do you want to buy a new home, but don't know how you should put together a down payment?

Reduce expenses and save. Turn your budget upside-down to uncover ways you can cut expenses to go toward your down payment. You could also try enrolling in an automatic savings plan at your bank to have a portion of your payroll automatically moved into your savings account. Some practical approaches to put together funds include moving into housing that is less expensive, and skipping a year's vacation.

Work more and sell items you don't need. Try to get an additional job. This can be exhausting, but the temporary difficulty can provide your down payment money. Additionally, you can make a comprehensive list of things you may be able to sell. Broken gold jewelry can be sold at local jewelry stores. You might own collectibles you can put up for sale on an auction website, or household goods for a tag or garage sale. Also, you might want to consider selling any investments you hold.

Tap into your retirement funds. Explore the specifics of your individual plan. Some homebuyers get down payment money from withdrawing from their IRAs or pulling funds out of 401(k) programs. You will want to be sure you know about any penalties, the effect this could have on income taxes, and repayment terms.

Ask for assistance from family members. First-time homebuyers somtimes receive down payment help from caring family members who may be willing to help them get into their first home. Your family members may be eager to help you reach the goal of having your first home.

Research housing finance agencies. Provisional mortgate loan programs are provided to homebuyers in specific circumstances, such as low income homebuyers or homebuyers looking to improve houses in a targeted area, among others. Financing with this kind of agency, you probably will receive a below market interest rate, down payment help and other incentives. Housing finance agencies may assist you with a lower rate of interest, get you your down payment, and offer other assistance. The main purpose of not-for-profit housing finance agencies is promoting home ownership in certain parts of the city.

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

  • FHA mortgages

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital role in assisting low and moderate-income Americans get mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in getting mortgages. FHA aids first-time homebuyers and others who would not be able to qualify for a typical mortgage by themselves, by offering mortgage insurance to the lenders. Interest rates for an FHA loan usually feature the market interest rate, but the down payment with an FHA mortgage are lower than those of conventional loans. Closing costs may be financed in the mortgage, and your down payment can be as low as 3% of the total amount.

  • VA loans

    With a guarantee from the Department of Veterans Affairs, a VA loan assists veterens and service people. This particular loan does not require a down payment, has reduced closing costs, and provides a competitive rate of interest. While the loans don't originate from the VA, the office certifies applicants by providing eligibility certificates.

  • Piggy-back loans

    You may finance your down payment through a second mortgage that closes with the first. Generally the first mortgage covers 80% of the purchase price and the "piggyback" funds 10%. The borrower covers the remaining 10%, instead of needing to put together the typical 20% down payment.

  • Carry-Back loans

    In a "carry back" agreement, the seller agrees to loan you part of his home equity to assist you with your down payment money. The buyer funds most of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Usually this type of second mortgage has a higher rate of interest.

No matter your strategy of putting together your down payment, the thrill of owning your own home will be just as sweet!

Need to talk about down payments? Call us: 469-640-0400.

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