How much is my down payment?

We are glad you asked! We have a couple of Zero Down Payment Required Mortgage Options but if you have to pay a small down payment we've got some tips for you.  We can help! Call us 256-543-0670 direct or you can browse our list of Alabama Licensed Mortgage Professional and email or text them direct if you prefer. We want to help and can't get started until you start asking questions. You're going to like dealing with us so much you'll be buying and selling real estate just so you can stay in contact with us more often.  Tell your friends your Mortgage Man/Lady gave you a tip. Ready to begin?
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Lots of borrowers can easily qualify for a mortgage loan, but they can't afford a large down payment. If you don't wish to move in an area served by Zero Down Payment USDA Rural Development Area we have an alternative for you. If you are not a veteran, you still have options. If you prefer a rural life but make to much to qualify for USDA, then you shouldn't need long to save what you may be short for standard Conventional Loans and FHA loans that both require rather small down payments, but allow gifts...more on that later. Here are a few Tips that will help you get together a down payment.

Slash the budget and build up savings. Scrutinize the budget to find extra money to go toward your down payment. Now we can certainly help your understand the very best way to save on closing cost. You could also try enrolling in an automatic savings plan at your bank to have a portion of your payroll automatically transferred into savings. You could look into some big expenses in your spending history that you can do without, or reduce, at least temporarily...you don't have to save that much.For example, if you're in the family basement you'll have the down payment money knocked out in a New York Minute...just stay closer to home for your vacation...stay off the credit cards to. They help build credit...sure...but they are a ball and chain after that. Use them wisely...like paying for your Appraisal when the time comes...we don't mind that at all.

Work more and sell items you don't need. Perhaps you can get an additional job and build up your earnings. In addition, you can make a comprehensive inventory of items you can sell. Broken gold jewelry can bring a good price from local jewelers. Multiple small items can add up to a fair amount at a garage or tag sale. You could also explore what your investments may bring if sold. 

Borrow your down payment from your retirement plan. Investigate the provisions of your particular program. It is possible to pull out funds from a 401(k) for you down payment or withdraw from an Individual Retirement Account. You will want to make sure you understand about any penalties, the effect this could have on your income taxes, and repayment obligation.

Ask for a generous gift from family. First-time home buyers, even seasoned home buyers sometimes get help with their down payment from thoughtful family members who are willing to help them get into their first home, second home, or buy a beach home. Use your imagination.  If your having trouble you might bring a new teething Lab Puppy home and pile your dirty clothes up in front of the washing machine. That might get mom reaching for her purse or dad handing you a checkbook quicker than you ever dreamed. Your family members may be more willing to help you reach the goal of owning your own home than you ever imagined. 

 

Learn about low-down Payment and no-down Payment mortgages.

  • FHA Mortgage Loan...we do a bunch of these Home Loans every single month!

    The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), plays a vital role in aiding low to moderate-income Americans qualify for mortgage loans. An office of the United States Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA aids first-time homebuyers and others who may not be eligible for a typical loan by themselves, by offering mortgage insurance to private lenders. Interest rates for an FHA loan generally feature the market interest rate, while the down payment for an FHA mortgage will be smaller than those of conventional loans. The down payment can go as low as three percent and the closing costs could be covered by the mortgage loan.

  • VA Mortgages...we think this is the very Best Lending Program in America offering Zero Down Payment VA Purchase and 100 percent VA refinance for any purpose including Bill Consolidation, Home Improvements...whatever.

    Guaranteed by the Department of Veterans Affairs, a VA loan is offered to service people and veterans. This particular loan requires no down payment, has limited closing costs, and offers a competitive rate of interest. While the loans don't originate from the VA, the department certifies applicants by providing eligibility certificates.

  • Piggy-back loans

    A piggy-back loan is a second mortgage that you close along with the first. In most cases the first mortgage is for 80% of the cost of the home and the "piggyback" funds 10%. The home buyer covers the remaining 10%, instead of putting the usual 20% down payment. We're not offering this because first mortgage rates are so good presently...and if the customer has 10 percent down they'll have the down payment needed for most programs anyway. We don't see owner seconds in today's market but I could see them returning if rates soared...like when they finally report true inflation numbers we feel at the grocery checkout.

  • Carry-Back loans

    With a carry-back mortgage, the you borrow part of the seller's home equity.. In this scenario, you would finance the majority of the purchase price with a traditional lending institution and finance the remainder with the seller. Usually you will pay a somewhat higher interest rate on the loan from the seller. These are not common today but may be coming back to market soon.

The feeling of accomplishment will be the same, no matter which approach you use to pull together your down payment. Your brand new home will be your reward! 


Need to talk about down payments? Call us: 256-543-0670 or email any originator you choose, text them direct...or simply hit the Apply. You can easily apply online through your smart phone...Simple, Easy, and at your convenience any hour of the day! 

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