Building Your Down Payment

Many buyers can qualify for various loan programs, but they don't have a lot of cash to pay a down payment. Below are a few ways to put together a down payment

Tighten your belt and save. Turn your budget upside-down to discover ways you can cut expenses to save for your down payment. Also, you can look into bank programs in which some of your paycheck is automatically deposited into a savings account each pay period. Some practical ways to build up funds include moving into less expensive housing, and skipping your family vacation for a year or two.

Work more and sell items you do not need. Look for an additional job. This can be exhausting, but the temporary difficulty can help you get your down payment. In addition, you can put together a comprehensive list of things you can sell. Unused gold jewelry can bring a good price from local jewelers. Maybe you own desirable items you can put up for sale on an auction website, or quality household goods for a tag or garage sale. You can also look into what any investments you own will sell for.

Borrow funds from a retirement plan. Explore the specifics for your individual plan. Many people get down payment money by withdrawing what they need from their Individual Retirement Accounts or pulling funds out of 401(k) programs. Make sure to learn about the tax ramifications, your obligation for repaying the money, and possible penalties for withdrawing early.

Ask for help from family members. First-time buyers are sometimes lucky enough to receive help with their down payment assistance from thoughtful parents and other family members who are prepared to help get them in their first home. Your family members may be inclined to help you reach the milestone of having your first home.

Contact housing finance agencies. Provisional loan programs are provided to homebuyers in specific situations, like low income buyers or people planning to remodel houses in a targeted place, among others. Financing with a housing finance agency, you may get a below market interest rate, down payment help and other advantages. These kinds of agencies can help you with a lower rate of interest, help with your down payment, and provide other benefits. The central purpose of non-profit housing finance agencies is boosting residence ownership in particular parts of the city.

Research no-down and low-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 significant role in helping low and moderate-income Americans qualify for mortgages. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA offers mortgage insurance to private lenders, ensuring the buyers are eligible for a mortgage. Down payment totals for FHA mortgages are below those with typical mortgages, even though these mortgages hold average rates of interest. Closing costs can be financed in the mortgage, and the down payment might be as low as 3 percent of the total.

  • VA mortgage loans

    VA loans are backed by the Department of Veterans Affairs. Service persons and veterans qualify for a VA loan, which typically offers a reasonable fixed interest rate, no down payment, and limited closing costs. Even though the VA doesn't actually provide the mortgages, it does certify eligibility to apply for a VA loan.

  • Piggy-back loans

    You can fund your down payment through a second mortgage that closes at the same time as the first. Most of the time, the piggyback loan is for 10 percent of the purchase price, while the first mortgage covers 80 percent. The homebuyer covers the remaining 10%, rather than come up with the usual 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow a portion of the seller's home equity.. You would borrow the majority of the purchase price from a traditional mortgage lender and borrow the remaining amount from the seller. Typically you will pay a somewhat higher interest rate on the loan from the seller.

No matter how you gather your down payment funds, the thrill of owning your own home will be just as sweet!

Want to discuss the best options for down payments? Give us a call: (478) 746-2063.

Basic Pre-Approval

Get the Best Mortgage Rate! Tell us a little about your current needs and we can use that information to match you with just the right loan.

Tell us about your loan needs.
How can we get in touch with you?
Tell us about your credit history.