Down payment funding alternatives

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 doesn’t have to be the case. As your mortgage banker, I can help you find creative ways to come up with your down payment.

Using a gift for 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’t come from just anyone.  Family members are the usual source.  And sometimes an employer may also be acceptable.   If this is an option open to you, please let me know.  I can help you determine which loan programs accept gift funds for down payments and who may give the gift and how to properly document the gift funds to avoid problems in closing.   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 are not required to be repaid!

Down payment assistance programs are not a viable options after October 1, 2009 with the exception of State Funed or municipality programs. Please check with me before you put an offer in on a property to ensure that these options are available and an option for your particular situation and loan program.

Zero down mortgage loans

With the exception of some of the state first time homebuyer programs most all of the zero down programs are no longer available.  If you were planning on using these options in the past please check in with me prior to putting an offer in on a property to discuss other options.

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 good news is that there are still some options available to assist you with your downpayment however most options have income and or property location limitations.  We will help you find the best option for your needs!