Your Down Payment

Many folks who would like to buy a new house qualify for various loan programs, but they can't afford a large down payment. Do you want to look into getting a new home, but don't know how to put together your down payment?

Slash your budget and build up savings. Look for ways you can trim your expenditures to set aside money for a down payment. Also, you can look into bank programs in which some of your take-home pay is automatically deposited into savings every pay period. Some effective approaches to put together funds include moving into less expensive housing, and skipping your vacation for a year or two.

Work a second job and sell things you don't need. Look for a second job. This can be exhausting, but the temporary trial can provide your down payment money. Additionally, you can make a comprehensive list of items you may be able to sell. Broken gold jewelry can bring a good amount from local jewelry stores. Maybe you own collectibles you can put up for sale at an online auction, or household goods for a garage or tag sale. You might also explore what any investments you have may bring if sold.

Tap into retirement funds. Explore the details of your particular plan. It is possible to take out funds from a 401(k) plan for a down payment or withdraw from an IRA. Make sure you are knowledgable about any penalties, the effect this may have on taxes, and repayment obligation.

Ask for assistance from generous members of your family. First-time homebuyers somtimes get down payment assistance from caring parents and other family members who are eager to help them get into their own home. Your family members may be willing to help you reach the goal of owning your own home.

Contact housing finance agencies. Special loan programs are extended to homebuyers in certain situations, like low income buyers or people planning to remodel homes in a particular neighborhood, among others. With the help of this type of agency, you may receive a below market interest rate, down payment help and other benefits. Housing finance agencies can help eligible homebuyers with a reduced rate of interest, get you your down payment, and offer other assistance. The primary goal of not-for-profit housing finance agencies is promoting residential ownership in targeted areas.

Find out about low-down and no-down mortgage loans.

  • FHA loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital part in aiding low to moderate-income individuals qualify for mortgage loans. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA helps first-time buyers and others who might not be eligible for a traditional mortgage by themselves, by providing mortgage insurance to lenders. Down payment totals for FHA loans are smaller than those of traditional mortgage loans, even though these mortgages have current interest rates. Closing costs might be financed in the mortgage, and your down payment can be as low as 3 percent of the total.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This specialized loan does not require a down payment, has mimimal closing costs, and provides a competitive rate of interest. Although the VA doesn't actually issue the mortgage loans, it does certify eligibility to qualify for a VA loan.

  • Piggy-back loans

    You can fund your down payment through a second mortgage that closes with the first. Often the first mortgage covers 80% of the cost of the home and the "piggyback" funds 10%. The homebuyer covers the remaining 10%, rather than come up with the usual 20% down payment.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow part of the seller's home equity.. The buyer finances the highest percentage of the purchase price through a traditional mortgage program and finances the remaining funds with the seller. Usually you'll pay a somewhat higher interest rate with the loan from the seller.

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

Need to talk about down payment options? Call us at 310-379-5997.

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