Mortgage Down Payment: Giving Up Lattes Only Goes So Far

You don’t have to give up your morning latte to save a mortgage down payment. Here are a few low-top-no mortgage down payment options to help you buy a house.

Source: Mortgage Down Payment: Giving Up Lattes Only Goes So Far | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Michael Nelson - AFNOne of the biggest obstacles to purchasing a home is arriving at the bargaining table with a down payment. Coming up with 20% for a home, of any size or price, is a daunting task and takes more that giving up a few things for a year or two. In today’s real estate market, there are other ways that folks trying to get out of a rental agreement and into their own home, can get some of the costs associated with a home purchase covered.

Low Mortgage Down Payment Options

Some popular government-backed low-to-no down payment mortgages that home buyers should consider are USDA Rural Housing Loans, VA home loans and FHA mortgages. At zero down or up to 3.5%, entry into a new home is attainable for those who qualify.

Lenders Covering Costs

Michael Nelson - AFNInterest rate is an important factor of any home loan. For the cash-strapped, it is sometimes a better option to take a slightly higher interest rate in exchange for a lower down payment. When a buyer chooses this type of loan, the buyer obtains “rebate” pricing, where the lender refunds money that is used for covering closing costs.

Seller Concessions

When negotiating on a home purchase, there is more to take into consideration than the asking price. Sellers can be asked to give a credit for closing costs, cover lender fees, discount points, prepaid expenses, mortgage insurance and/or VA funding fees. There are limits to the concessions that can be made and it is important that these limits are considered when putting together your buying strategy. A knowledgable realtor or lender is able to suggest what is right for your individual financial situation.

Down Payment Assistance

Michael Nelson - AFNFor those that still need another option to enter the real estate market, there are various federal, state and local agencies that offer programs geared for assisting with a down payment. Usually these programs are most available to first time home buyers who have a somewhat limited income. Home price and location are also usually a consideration. Some programs to check out are Community Seconds, offered through Freddie Mac and Fannie Mae, and The Good Neighbor Next Door program, which is designed to help first-responders and teachers get into a new home.

For up to date information on a home buying strategy that will work for you, give me a call or use the provided link to set up a time to meet.

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As always – Happy House Hunting

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Michael Nelson - AFN


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