Your Down Payment

Many buyers qualify for several different kinds of mortgages, but they can't afford a large down payment. Here are a few ideas:

Tighten your belt and save. Turn your budget upside-down to find ways you can cut expenses to go toward your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your paycheck deposited into savings. You might look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or stay local for your family vacation.

Sell things you do not need and get a second job. Look for a second job. This can be rough, but the temporary trial can help you get your down payment. In addition, you can make a comprehensive inventory of items you may be able to sell. Unused gold jewelry can bring a good amount from local jewelers. A closetful of small items can add up to a nice sum at a garage or tag sale. You could also look into what any investments you own may sell for.

Borrow from retirement funds. Investigate the provisions of your particular plan. Some people get down payment money from withdrawing funds from Individual Retirement Accounts or getting money out of their 401(k) programs. Be sure you understand the tax consequences, repayment terms, and penalties for withdrawing early.

Request a gift from family. Many buyers somtimes receive help with their down payment help from gracious family members who may be willing to help them get into their first home. Your family members may be inclined to help you reach the milestone of having your first home.

Learn about housing finance agencies. Provisional mortgage loans are offered to buyers in certain situations, like low income buyers or buyers looking to remodel homes in a specific place, among others. With the help of this type of agency, you probably will get an interest rate that is below market, down payment assistance and other benefits. These types of agencies can help you with a reduced rate of interest, get you your down payment, and offer other advantages. The primary goal of not-for-profit housing finance agencies is promoting the purchase of homes in certain places.

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 vital part in assisting low to moderate-income buyers get mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to the private lenders, ensuring the buyers are eligible for a mortgage. Down payment amounts for FHA loans are less than those for conventional mortgage loans, even though these loans hold average rates of interest. The required down payment can be as low as 3 percent and the closing costs could be packaged in the mortgage loan.

  • VA mortgages

    Guaranteed by the Department of Veterans Affairs, a VA loan assists service people and veterans. This particular loan requires no down payment, has mimimal closing costs, and provides a competitive interest rate. Although the mortgage loans don't originate from the VA, the department certifies borrowers by issuing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. Usually the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The homebuyer covers the remaining 10%, instead of putting the usual 20% down payment.

  • Carry-Back loans

    We a seller carries back a second mortgage, the you borrow part of the seller's home equity.. In this scenario, you would borrow the largest portion of the purchase price from a traditional mortgage lending institution and borrow the remainder from the seller. Typically you will pay a somewhat higher interest rate with the loan financed by the seller.

The feeling of accomplishment will be the same, no matter how you manage to come up with your down payment. Your brand new home will be worth it!

Need to talk about down payment options? Give us a call at 9043423622.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question
By checking the box, you agree that Bright Vision Mortgage may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.

159 Hampton Point Drive Suite 4
St. Augustine, FL 32092