Your Down Payment

Lots of people who would like to purchase a new home can easily qualify for several different kinds of mortgages, but they can't afford a large down payment. We have a few ideas

Tighten your belt and save. Be on the look-out for ways you can trim your expenses to save toward a down payment. You also could enroll in an automatic savings plan at your bank to have a portion of your pay automatically deposited into savings. Some effective ways to put together funds include moving into less expensive housing, and skipping your vacation for a year or two.

Sell items you don't need and find a part-time job. Look for a second job. This can be rough, but the temporary trial can provide your down payment money. In addition, you can put together a comprehensive list of things you may be able to sell. Unworn gold jewelry can be sold at local jewelry stores. Multiple small things might add up to a nice sum at a garage or tag sale. You could also look into what any investments you have could sell for.

Tap into retirement funds. Check the provisions of your specific plan. It is possible to borrow money from a 401(k) plan for a down payment or get a withdrawal from an IRA. Be sure you comprehend the tax ramifications, repayment terms, and any early withdrawal penalties.

Ask for assistance from members of your family. Many homebuyers somtimes receive help with their down payment assistance from gracious parents and other family members who may be anxious to help get them in their own home. Your family members may be eager to help you reach the milestone of buying your first home.

Contact housing finance agencies. These types of agencies provide special mortgate loan programs to moderate and low income homebuyers, buyers interested in sprucing up a house in a specific part of the city, and additional specific kinds of buyers as defined by each agency. Working with a housing finance agency, you can be given an interest rate that is below market, down payment assistance and other benefits. Housing finance agencies can assist eligible homebuyers with a reduced interest rate, help with your down payment, and provide other assistance. These non-profit programs to promote community in specific neighborhoods.

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

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in assisting low to moderate-income Americans get mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time buyers and others who might not be eligible for a conventional mortgage loan on their own, by providing mortgage insurance to private lenders. Interest rates for an FHA mortgage usually feature the going interest rate, but the down payment requirements with an FHA mortgage will be below those of conventional loans. Closing costs may be included in the mortgage, and the down payment might be as low as 3 percent of the purchase price.

  • VA loans

    Guaranteed by the Department of Veterans Affairs, a VA loan assists veterens and service people. This special loan does not require a down payment, has limited closing costs, and offers a competitive interest rate. While the VA doesn't actually finance the mortgage loans, it does certify eligibility to apply for a VA mortgage.

  • Piggy-back loans

    You may fund a down payment using a second mortgage that closes along with the first. Often the first mortgage covers 80% of the cost of the home and the "piggyback" funds 10%. The borrower covers the remaining 10%, instead of come up with the typical 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the seller loans you part of his or her equity. The buyer funds most of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Typically, this form of second mortgage will have a higher rate of interest.

No matter your method of getting together your down payment, the thrill of living in your own home will be just as great!

Want to discuss down payments? Give us a call: (512) 422-9036.

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