Down Payment

Nearly every home purchase requires a down payment. The amount of the down payment can vary greatly depending on the home, the seller, the mortgage obtained, credit history of the borrower, etc.

There are such things as no down loans that don't require the buyer to come up with the funds, but those loans do include some sort of work around.

Loans and gifts can help with your down payment but you can not use this strategy for all loan programs. The most popular program for this tactic is the Federal Housing Administration or FHA. FHA allows 100% gift funds for your down payment. The gift can be from any relative or can be collected through new innovative programs, like the Bridal Registry where couples receive money into an account that can be used for the down payment.

Another popular tactic, which can be used in a wider range of programs, is to borrow from your 401K program. If you have a 401K program with your employer, you can withdraw without a penalty for your down payment and pay it back over a specified period. There are some drawbacks, the payment will be used in qualifying and your 401K account will not continue to grow as fast. Even with these drawbacks, it is often a smart move if this is your only option.

Many local and state agencies run bond programs to generate funds to help individuals and families with a down payment. Contrary to public thinking, these bond issues are not a type of welfare. The government knows that it can be tough to buy that first home, especially on a limited income.

Most agencies are income sensitive, but you may be surprised by the high level of acceptable income. The income level is especially high if you have children or dependents. Most agencies also have purchase limits, but they are adjusted to the income qualifications level.

If you are able to obtain down payment assistance, you may receive a lower interest rate.

Mortgage Website Design and Tools - Demo Site Although the Loan Site Plus is easy and pretty much self-explanatory, we know there are some of you that like to "test-ride" before making that buying decision. Give us a call toll free at 877.201.3060 and we'll have a representative walk you through an actual demo account on the phone. Use the contact form below to if you would like us to contact you. We'll be happy to discuss our site packages in detail with you. First Name: Last Name: Email: Phone: Comments: