Your Down Payment
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Many borrowers qualify for several different kinds of mortgages, but they can't afford a large down payment. Here are a few straightforward ways to get together your down payment. *** Before you deposit any large sum of money please consult with your Loan Officer****
Cut expenses and save. Scrutinize your budget to find extra money to save for your down payment. Also, you can look into bank programs in which some of your take-home pay is automatically deposited into a savings account every pay period. You would be wise to look into some big expenses in your budget that you can do without, or reduce, at least temporarily. For example, you may move into less expensive housing, or skip a vacation.
Work more and sell things you don't need. Try to find a second job. This can be rough, but the temporary difficulty can provide your down payment money. You can also get creative about the things you might be able to put up for sale. A closet full of small things could add up to a nice sum at a garage or tag sale. Also, you might want to think about selling any investments you hold.
Borrow from your retirement plan. Explore the details for your particular plan. It is possible to borrow money from a 401(k) for a down payment or withdraw from an Individual Retirement Account. Make sure to learn about the tax ramifications, repayment terms, and possible early withdrawal penalties.
Ask for help from generous family members. Many homebuyers are sometimes fortunate enough to receive help with their down payment help from caring parents and other family members who are eager to help get them in their own home. Your family members may be happy at the chance to help you reach the goal of buying your first home.
Learn about housing finance agencies. These types of agencies offer provisional mortgage loan programs- for moderate and low income buyers, buyers with an interest in rehabilitating a residence within a specific area, and other groups as specified by the finance agency. Financing through this type of agency, you may be given a below market interest rate, down payment help and other advantages. Housing finance agencies can help you with a lower interest rate, get you your down payment, and offer other benefits. These non-profit programs to promote home ownership in particular places.
Research no-down and low-down mortgage loans.
- Federal Housing Administration (FHA) mortgages
The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low to moderate-income individuals qualify for mortgage loans. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers in qualifying for mortgage loans. FHA provides mortgage insurance to private lenders, enabling buyers who may not be eligible for a conventional loan, to obtain home financing. Down payment totals for FHA loans are smaller than those for typical mortgages, although these mortgages come with average rates of interest. Closing costs may be covered by the mortgage, while your down payment might be as low as 3.5% of the purchase price.
- VA loans
VA loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can benefit from a VA loan, which generally offers a reasonable interest rate, no down payment, and minimal closing costs. Although the loans are not actually issued by the VA, the office certifies applicants by issuing eligibility certificates.
The satisfaction will be the same, no matter how you manage to come up with the down payment. Your brand new home will be your reward!
Want to discuss down payment options? Give us a call: (504) 832-3131.