Your Down Payment

Lots of borrowers qualify for a loan, but they don't have much to pay the standard down payment. Do you want to look into getting a new house, but don't know how to get together a down payment?

Slash the budget and build up savings. Be on the look-out for ways to reduce your monthly expenses to put away money for a down payment. You also could enroll in an automatic savings plan to have a percentage of your pay automatically deposited into savings. You could look into some big expenses in your budget that you can do without, or reduce, at least temporarily. For example, you may move into less expensive housing, or skip a vacation.

Work a second job and sell items you don't need. Perhaps you can find an additional job and build up your earnings. Additionally, you can put together an exhaustive list of things you may be able to sell. Broken gold jewelry can bring a good price from local jewelry stores. Multiple small things may add up to a nice sum at a garage or tag sale. You might also explore what your investments will sell for.

Borrow from your retirement funds. Check the provisions of your retirement program. It is possible to pull out money from a 401(k) plan for you down payment or make a withdrawal from an Individual Retirement Account. Make sure you understand about any penalties, the way this will affect on your taxes, and repayment obligation.

Ask for assistance from family members. First-time homebuyers sometimes receive down payment help from thoughtful parents and other family members who may be eager to help them get into their first home. Your family members may be pleased at the chance to help you reach the goal of owning your first home.

Research housing finance agencies. Provisional loan programs are provided to buyers in specific situations, like low income purchasers or homebuyers looking to renovating homes in a targeted part of town, among others. Financing through this type of agency, you may be given a below market interest rate, down payment assistance and other advantages. Housing finance agencies may assist you with a reduced interest rate, get you your down payment, and provide other benefits. The principal goal of not-for-profit housing finance agencies is build up residential ownership in targeted places.

Learn about low-down and no-down mortgages.

• FHA mortgage loans

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low and moderate-income buyers get mortgages. Part of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) assists homebuyers who need to get mortgage loans. FHA offers mortgage insurance to the private lenders, ensuring the buyers are eligible for financing. Down payment totals for FHA loans are smaller than those for conventional mortgages, although these mortgages hold average rates of interest. Closing costs may be covered by the mortgage, and the down payment may be as low as 3 percent of the purchase price.

• VA loans

  VA loans are guaranteed by the Department of Veterans Affairs. Veterens and service people can receive a VA loan, which typically offers a low fixed rate of interest, no down payment, and limited closing costs. Although the VA doesn't finance the loans, it does certify eligibility to apply for a VA mortgage.

• Piggy-back loans

  You can fund your down payment with a second mortgage that closes along with the first. Generally the piggyback loan is for 10 percent of the purchase price, while the first mortgage finances 80 percent. In contrast to the usual 20 percent down payment, the buyer just has to cover the remaining 10 percent.

• Carry-Back loans

  In a "carry back" mortgage, the seller commits to lend you part of his own equity to help you with your down payment money. In this scenario, you would borrow the majority of the purchase price from a traditional lender and borrow the remainder from the seller. Typically, this kind of second mortgage will have higher interest.