Get the Perfect Nest, without Losing Your Nest Egg
Making a down payment can be a scary undertaking. It can seem like a huge chunk of change, and if it’s too high it can hold you back from making other payments.
That’s why we’ve researched easy, helpful ways to make sure your down payment doesn’t keep you from getting your dream house. These five tips on how borrowers can save on down payments from houselogic is a great place to start finding ways to save.
- Crowdsource that Dream Home
Many have heard of the crowdfunding sites such as GoFundMe.com or Kickstarter for new businesses, but now sites such as Feather the Nest allow potential home buyers to sign up and ask for monetary donations instead of the traditional china or linens as gifts for their wedding or as a graduation gift!
- Ask the Seller to Help (Really!)
For those sellers looking to finish the sale quickly, there is the possibility they might want to assist the buyer with closing costs known as seller concessions. With fewer closing costs, that could mean more money for the deposit. There are limits on the concessions depending on what type of mortgage they might get and these concessions need to be included in the purchase contract.
- Look into Government Options
The U.S. Department of Housing and Urban Development, or HUD, offers a number of homeownership programs, including assistance with down payment and closing costs. HUD offers a 50 percent discount to several professions including law enforcement officers, firefighters, teachers and EMT personnel through their Good Neighbor Next Door Sales program. The VA will guarantee part of a home loan through commercial lenders for veterans. Often, there’s no down payment or private mortgage insurance required, and the program helps borrowers secure a competitive interest rate.
- Check with Employer
Employer Assisted Housing (EAH) programs help connect low- to moderate-income workers with down payment assistance through their employer.
- Take Advantage of Special Lender Programs
There are some lenders who offer programs to help people buy a home with a small down payment. Potential home buyers are encouraged to check with one of their regional banks to see if they have a first-time home buyer program they could put toward their down payment.
As you can see, there are several options available to people who are ready to take the leap into home ownership. And it is possible to be responsible and reasonable while also finding the home you’ve always wanted. So spread your wings and start your search!