When it comes to mortgage loans, a lot of buyers actually qualify, the problem though, is that they usually don’t have the money to pay the standard down payment. The following are some helpful tips to help you gather enough money to make a down payment on a house in Jacksonville FL – or anywhere for that matter.
You can always work a second job, although no one will say it’s going to be easy. But your second job doesn’t need to be one entailing a long time commitment, since it’s only meant to help you earn enough money for a down payment.
Save and cut down on expenses…
This is a very practical and straightforward advice. The first thing to do is assess your budget to find ways that will enable you to curtail expenses. You can consider also registering in an automatic savings plan to automatically divert a certain amount of your pay into a savings account. Other ways of saving and gathering additional funds for a down payment include relocating into a less expensive place, eating out less, and put off going away for a time until you have your down payment.
Sell things you don’t use or need anymore…
Regarding the selling of things, you need to make a list of items that you can let go. Nothing can help you gather money faster than selling gold jewelry you no longer use. Sell them to jewelers or to people you know who love and collect jewelry. If you have more than a dozen things that you don’t need and are just sitting in your attic or garage gathering dust, you can do a yard sale.
You can use some of the money from your retirement funds.…
Go over your individual retirement plan and see if you can borrow against it. There are folks who get cash for a down payment by borrowing or taking out money from their 401(k) programs or withdrawing from their IRAs. Of course, you need to be aware of any penalties you might incur when borrowing money from these plans and in what way they can impact repayment terms and taxes.
Ask family members for help…
There are a significant number of home buyers who have been able to make a down payment with a help from their family (usually, their parents). Some family members may be happy that you plan to buy a new home which makes them more than willing to help you out with its down payment.
Get to know more about housing finance companies…
In certain instances, finance companies may grant special mortgage loans to buyers who plan to remodel their house, to low income buyers or for other reasons. If you opt to take out a loan from a housing finance agency, chances are they will offer you a financing plan that will provide benefits such as, below market interest rates and other kinds of down payment assistance. Agencies such as these are usually non-profit and usually assist certain types of communities.
Do some research into the no-down or low-down mortgage loan plans as well. They include:
• VA mortgage loans
Service people and military veterans can avail of this type of loan that is guaranteed by the U.S. Department of Veterans Affairs. Being a loan from the US government, a VA mortgage loan provides borrowers with very small closing costs, no down payment and a very low interest rate. Borrowers are given certificates of eligibility by the VA even if the mortgages don’t really emanate from the VA.
• Federal Housing Administration (FHA) mortgages
A branch of the HUD or U.S. Department of Housing and Urban Development the Federal Housing Administration (FHA), is a federal agency that plays a huge role in helping low and moderate-income individuals acquire mortgages. They help guarantee an eligible individual to get a FHA Federal Housing Administration (FHA) mortgage insurance to private lenders. FHA mortgages are considerably lower compared to conventional mortgages; however, FHA mortgages often have interest rates that follow the current conventional rates. The mortgage may also come with closing costs although the down payment is really low, sometimes as low as 3% of the total.
Whatever plan you decide to follow, be patient and keep your eye on the big prize, because the satisfaction of owning your own home is priceless.
If you need help or have questions deciding what payment options to take, call us today at (904) 398-4476.
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