Down Payment
Sources? -
Many buyers look at their cash on hand as their only source for their
down payment. This simply is not the case. One way to fund or partially
fund a down payment is by using a gift. Parents, grandparents and
other family members are often eager to help by making a cash gift
toward the purchase of your home.
There are also down payment assistance charities that can help you.
And, of course, if you are selling a home, the equity youve built
up can be applied to your down payment.
Another good source for a down payment is to borrow against your
employer's retirement plan.
Many states and counties offer downpayment assistant programs for
homebuyers. Government down payment assistant programs often have
some restrictions, such as the homebuyer must not own any other
properties, and the property being purchased has to be the home
buyer's primary residence, etc. Many programs also stipulates that
if the homeowner sells the property at a profit or refinances the
mortgage to withdraw cash within a certain number of years, the
homeowner must repay all or a portion of the funds he received as
down payment assistance.
Lots of Gift programs out there. Neahmiya(sp), heart program etc.
Just make sure that if it is not an FHA loan that the HUD does not
disclose where it is comming from. I had this conversation with
Argent and a few other lenders recently and they just do not want
to see it on the HUDS that it came from one of these places. Otherwise
you are fine. All they want to see is certified funds. FHA, on the
other hand, doesn't care. These programs were designed around FHA
and FHA loves them so you can do a 100% FHA loan instead of a 97%.
Often the lender will require the Gift fund to be seasoned or have
been in the bank for a certain amount of time.
For those with good credit scores there are 103% programs available.
There is no down payment and the 3% is used to cover closing cost.
As you can see there are many sources for down payments that you
may not be aware of. If you want to buy a home and do not have down
payment money available go ahead and contact your mortgage broker
and he/she can help you decide what might be best for you.
Some companies have down payment assistance programs for employees
who are relocating at the request of the employer. Others offer
low interest rate loans to employees to be used as part of a downpayment.
Even at companies that have no such programs in place, some may
be willing to offer some form of assistance.
