Your Down Payment

Many borrowers qualify for several different kinds of mortgages, but they don't have much to put up the standard down payment. We have a few suggestions

Tighten your belt and save. Turn your budget inside out to discover extra money to go toward your down payment. Also, you can look into bank programs through which a portion of your paycheck is automatically placed into savings each pay period. You might look into some big expenses in your spending history that you can give up, or reduce, at least temporarily. Here are a couple of examples: you might decide to move into less expensive housing, or stay local for your vacation.

Work a second job and sell things you do not need. Perhaps you can get a second job and build up your earnings. Additionally, you can make a comprehensive list of things you can sell. Unused gold jewelry can be sold at local jewelry stores. A closetful of small things might add up to a fair amount at a garage or tag sale. Also, you might want to look into selling any investments you hold.

Borrow your down payment from your retirement plan. Explore the specifics of your particular plan. It is possible to borrow funds from a 401(k) for a down payment or withdraw from an IRA. Be sure to find out about the tax ramifications, your obligation for repayment, and possible penalties for withdrawing early.

Ask for help from generous family members. Many buyers are often fortunate enough to get down payment assistance from giving family members who may be able to help them get into their first 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 offer special mortgage loans to low and moderate-income homebuyers, buyers with an interest in sprucing up a home in a specific part of the city, and other specific types of buyers as defined by the finance agency. Financing with this type of agency, you may get an interest rate that is below market, down payment help and other benefits. These kinds of agencies can help you with a reduced interest rate, help with your down payment, and offer other benefits. The primary mission of not-for-profit housing finance agencies is build up residence ownership in targeted parts of the city.

Explore no-down and low-down mortgage loans.

  • FHA mortgage loans

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important role in assisting low and moderate-income Americans qualify for mortgage loans. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who wish to qualify for home financing. FHA provides mortgage insurance to private lenders, enabling buyers who may not qualify for a conventional mortgage loan, to receive a mortgage. Interest rates with an FHA loan are typically the market interest rate, while the down payment for an FHA loan are lower than those of conventional loans. Closing costs may be financed within the mortgage, and the down payment can be as low as 3 percent of the total.

  • VA mortgages

    Guaranteed by the Department of Veterans Affairs, a VA loan qualifies service people and veterans. This particular loan does not require a down payment, has mimimal closing costs, and provides a competitive interest rate. Even though the VA does not actually provide the mortgage loans, it does certify eligibility to apply for a VA mortgage.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. Generally the piggyback loan is for 10 percent of the home's price, and the first mortgage finances 80 percent. In contrast to the traditional 20 percent down payment, the homebuyer will just have to cover the remaining 10 percent.

  • Carry-Back loans

    We a seller carries back a second mortgage, the seller loans you part of his or her equity. The buyer finances most of the purchase price through a traditional mortgage program and borrows the remainder from the seller. Usually you'll pay a slightly higher rate on the loan financed by the seller.

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

Want to discuss down payments? Give us a call at (718) 477-4405.

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