Your Down Payment

Many borrowers can easily qualify for several different kinds of mortgages, but they don't have a lot of money to put up a down payment. Here's where you start

Slash the budget and build up savings.  Turn your budget inside out to find ways you can cut expenses to go toward your down payment. There are bank programs in which some of your take-home pay is automatically transferred into savings every pay period. You might look into some big expenses in your budget that you can live without, or trim, at least temporarily. For example, you might move into less expensive housing, or stay local for your vacation.

Work more and sell items you don't need. Perhaps you can find a second job to get your down payment money. You can also get serious about the possessions you really need and the things you could be able to sell. Multiple small things might add up to a fair amount at a garage or tag sale. You can also research what any investments you own may sell for.

Tap into retirement funds. Explore the details of your individual plan. Some homebuyers get down payment money by withdrawing what they need from their IRAs or borrowing from their 401(k) programs. Be sure you comprehend the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for a generous gift from family. Many buyers are sometimes lucky enough to receive down payment assistance from giving family members who may be anxious to help get them in their first home. Your family members may be eager to help you reach the milestone of buying your first home.

Learn about housing finance agencies. These agencies provide provisional mortgage loans for low and moderate-income buyers, buyers with an interest in remodeling a residence within a particular part of the city, and additional groups as specified by the agency. With the help of a housing finance agency, you can get an interest rate that is below market, down payment assistance and other perks. These kinds of agencies may assist eligible homebuyers with a lower interest rate, get you your down payment, and offer other advantages. The central purpose of not-for-profit housing finance agencies is boosting residential ownership in specific parts of the city.

Explore no-down and low-down mortgage loans.

  • Federal Housing Administration (FHA) Mortgages:

    The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a critical role in assisting low and moderate-income families to get mortgage loans. An office of the U.S. Department of Housing and Urban Development (HUD), FHA (Federal Housing Administration) aids homebuyers who need to qualify for home financing. FHA aids first-time homebuyers and others who would not be able to qualify for a traditional mortgage by themselves by offering mortgage insurance to the lenders. Down payment totals for FHA mortgages are lower than those of traditional mortgages, although these mortgages hold current rates of interest. Closing costs might be included in the mortgage, and your down payment may be as low as 3.5% of the purchase price.

  • VA Mortgages:

    VA loans are backed by the U.S. Department of Veterans Affairs. Service persons and veterans qualify for a VA mortgage, which generally offers a low fixed interest rate, no down payment and minimal closing costs. Even though the VA does not provide the loans, it does issue a certificate of eligibility to qualify for a VA mortgage.

  • Piggy-back Loans

    You may fund a down payment using a second mortgage that closes with the first. Generally, the first mortgage covers 80% of the purchase price and the "piggyback" funds 10%. Rather than the traditional 20 percent down payment, the homebuyer just has to pull together the remaining 10 percent.

The satisfaction will be the same, no matter how you manage to pull together your down payment. Your brand new home will be worth it!

Want to discuss your down payment? Call us at 607-737-8815.

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Elmira Savings Bank is an approved Seller/Servicer of Freddie Mac, FHA/Department of Housing & Urban Development, VA, USDA, and SONYMA (NY Only). Elmira Savings Bank is an Equal Housing Lender committed to ensuring every applicant for credit receive fair and equal treatment throughout the credit application and approval process, as embodied in the Equal Credit Opportunity Act and the Fair Housing Act. All mortgage lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply.

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