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Your Down Payment

Shopping for a mortgage loan? Joe Wagner will be glad to talk about your mortgage needs! Call Joe Wagner at 612-327-4544. Want to get started? Apply Online Now.

Lots of borrowers can qualify for a loan, but they can't afford a large down payment. Below are a few straightforward methods that will help you put together your down payment

Slash your budget and build up savings. Be on the look-out for ways you can trim your monthly expenses to save toward a down payment. There are bank programs through which some of your paycheck is automatically transferred into a savings account every pay period. You could look into some big expenses in your spending history that you can give up, or trim, at least temporarily. For example, you may decide to move into less expensive housing, or stay close to home for your annual vacation.

Sell items you don't need and find a second job. Try to find an additional job. This can be exhausting, but the temporary difficulty can provide your down payment money. In addition, you can put together an exhaustive list of items you can sell. Unused gold jewelry can bring a good price from local jewelers. A closet full of small things could add up to a fair amount at a garage or tag sale. Also, you can think about selling any investments you hold.

Tap into retirement funds. Investigate the parameters of your specific program. Some homebuyers get down payment money from withdrawing from their IRAs or borrowing from their 401(k) programs. You will want to ensure you understand about any penalties, the way this may affect on income taxes, and repayment terms.

Ask for a generous gift from your family. First-time buyers are often fortunate enough to get down payment assistance from caring family members who may be able to help get them in their first home. Your family members may be willing to help you reach the milestone of owning your own home.

Research housing finance agencies. Special mortgage loan programs are extended to buyers in specific circumstances, such as low income buyers or future homeowners planning to remodel homes in a targeted neighborhood, among others. Working with a housing finance agency, you probably will receive an interest rate that is below market, down payment help and other benefits. These kinds of agencies can help you with a reduced rate of interest, help with your down payment, and provide other advantages. These non-profit agencies exist to promote the value of homes in certain neighborhoods.

Learn about low-down and no-down mortgages.

  • Federal Housing Administration (FHA) loans

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in aiding low and moderate-income individuals qualify for mortgage loans. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids homebuyers who need to get home financing. FHA offers mortgage insurance to the private lenders, ensuring the buyers are eligible for financing. Down payment sums for FHA loans are lower than those for conventional mortgages, even though these mortgages come with current interest rates. The required down payment may go as low as 3 percent while the closing costs can be covered by the mortgage loan.

  • VA mortgages

    VA loans are backed by the Department of Veterans Affairs. Service persons and veterans can get a VA loan, which usually offers a competitive fixed interest rate, no down payment, and limited closing costs. Even though the VA doesn't issue the loans, it does issue a certificate of eligibility to apply for a VA loan.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. In most cases the first mortgage covers 80% of the cost of the home and the "piggyback" funds 10%. Instead of the traditional 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

  • Carry-Back loans

    In a "carry back" agreement, the seller agrees to loan you a piece of his home equity to assist you with your down payment money. The buyer funds the highest percentage of the purchase price with a traditional mortgage program and borrows the remainder from the seller. Typically you will pay a somewhat higher 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 great!

 

Have questions about the best options for Down Payments? Give Joe Wagner a call at 612-327-4544. It's his job to answer Down Payment questions, so he is happy to help! We know you're busy, so feel free to complete the form below to be contacted by Joe Wagner.
  

 

                  






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