Are there any inside tips on down payments for first-time buyers?
Folks who are new to the home-shopping world need more than just good luck. You should, of course, save all you can for closing costs and a down payment. For further help:
- Revisit your "wish list"
Reconsider what you're looking for in a first home. Find out what you can afford now, and consider buying a starter home that requires a small down payment with the idea of moving up in a few years.
- Take advantage of special programs
Look into special low- and no-down payment programs like loans guaranteed by the Department of Veterans Affairs (VA) and Federal Housing Administration (FHA). Some areas also have local programs for low- and moderate-income families or first-time buyers, offering lower interest rates or down payments.
- Gather gifts
Check with parents and relatives for monetary gifts that can go toward a down payment or closing costs. A 20% down payment can dramatically cut monthly costs and eliminate monthly mortgage insurance premiums.
- Consider "sweat equity"
If you can fix up a home thats in poor condition, you increase the value of your investment faster. Ask us about special combination loans that provide fix-up funds as well as purchase money.
- Scour market for bargains
Call on us to research foreclosure properties, housing auctions and other homes available at below-market costs.
Want to know more? Click on "Ask Your Own Questions" or call or e-mail us today with questions of your own. We can tell you how much house you can afford, and we can help you get into your first home.