For many buyers, especially first-time buyers, saving up the funds for the down payment can be a seemingly insurmountable hurdle to home ownership. This doesnt have to be the case. As your mortgage broker, I can help you find creative ways to come up with your down payment.
One way to fund a down payment is by using a gift. For many loan programs, a gift may be used for a portion or all of the required down payment. Money given as a gift for a down payment can come from a family member. If this is an option open to you, please let me know. We can help you determine which loan programs accept gift funds for down payments and who may give the gift. I'll also supply the gift letter that the person giving the gift is required to sign. The gift letter states that the funds are a gift and will not be paid back. Guidelines require the lender to verify the donor's ability to give with a copy of the donor's bank statement.
Service persons and veterans can qualify for a VA Loan that requires no down payment. VA Loans are guaranteed by the U.S. Department of Veterans Affairs. In addition to no down payment, these loans usually offer a competitive fixed interest rate and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan. The other option is a USDA Rural Development loan which is only allowed in certain areas and certain restrictions apply.
Want to discuss the best options for down payments?
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