Where Can I Find Help With Down Payments?
Where can today’s first time home buyers find assistance with down payments?
It is a very appealing time to purchase a home. However, despite attractive home prices and interest rates many first time home buyers have allowed themselves to be held back by the perceived obstacle of needing sizable down payments. Fortunately, aggressive new home loans, and technology have been among the factors making it more affordable than ever to buy a home.
Those eager to take advantage of the current market to buy their first home could look to some of the following options to bridge the gap…
Get Help on Mortgage Down Payment
Low Down Payment Home Loans
A variety of no and low down payment purchase mortgage loans are available to both first time and repeat home buyers. This includes FHA home loans, VA home loans, USDA mortgages, and new 3% down Fannie Mae and Freddie Mac financing programs.
Friends and Family
Leveraging friends and family for support in purchasing property has become increasingly attractive, especially for first time home buyers. When analyzed there are actually many benefits in these arrangements for those with cash to use it to aid their close contacts to acquire homes. For buyers, funds from these sources can help secure better terms on lower LTV first mortgage loans, and preferred terms on secondary financing. For family and other contacts loaning money to those they know to purchase homes can provide a safe investment, better rates of return than other investments, and help to keep money in the local economy, whilst bolstering the local housing market. Some parents may also find this a great way to pass on wealth and inheritances early.
Crowdfunding
Building on the above; new crowdfunding platforms and peer-to-peer social lending sites have expanded the capabilities of home buyers to leveraging funds for mortgage down payment from the much wider community. Those deploying their capital through these platforms will enjoy all the perks previously mentioned above.
Leverage Your Retirement Savings
While some may wince at the idea of tapping their 401k and IRA plans early, borrowing against them to purchase a home could be one of the very best moves for providing for retirement. Many will also discover the returns on this financial move prove far greater for nest egg building than mediocre 401k performance.
Down Payment Assistance Programs
Many counties, local authorities, and nonprofits offer a variety of mortgage down payment assistance programs to enable more first time home buyers to get into the market. This can run into hundreds of thousands of dollars in assistance in some prime markets. Beyond basic down payment assistance this may also include second mortgages or grants for closing costs and home improvements.
