By: Dianne Bryan
Government give outed down payment assistance designs still need, in most cases a lower down payment of at least 5% . There are very few that will give a award for a down payment, but they have exacting requirements. There are other options of getting money for a down payment, but they are in the form of loans and are to be repaid. This can hurt your chances to get in A down payment assistance program , because it is perspectiveed a debt. The assistance programs have a lot to offer for someone who has a small down payment. They offer government insured and backed loans, lower interest rates and some will finance the closing costs, fees and equity insurance in with the mortgage loan. The program choice you make, will let you know how much you will need for the down payment. Plan on at least 5% of the home price.
Down payment for a down payment assistance program can be haveed in many different ways. The best way is to save for it. Where are you sustenance now? If you are living at home with your parents, maybe you can work something out with them, like pay a monthly rent and your parents (if they can afford it) can put it in a savings account in both your names, so you can hit the finances for the down payment when you reach enough money. Another option if you live at home, is to sell some of your childhood toys or items you no longer need on E-bay or Craig’s List. I’m sure your parents will be happy to un-clutter your room and their attic. Maybe they have items that you could sell and they will let you use the money to put in your savings. Garage sales are another idea, and you can make a family project out of it with younger children in the household. Trust me Mom and Dad will be happy to help if it gets you out on your own.
You are saving for your own home, sacrifice. Saving $200.00 per month in rent for one year is half your down payment. Down payment assistance programs will look into all your back credit history, if they see you have been good, they will see that by downsizing on your apartment was a wise choice and shows obligation. If you are renting a house, ask your landlord if they would consider a Lease Option- rent with option to buy. The landlord will need cash down for the option, but this will be put towards your down payment. Make sure you like the home, before excepting this option. If your payments are current in this home, then the landlord may help obtain financial support. No affair where you are living now, there is still time to prepare for saving for a down payment. Down payment assistance programs are going to be around for for a while, and they may even get better. So start saving now, and the more you save the better choices of properties you will have. You will also be in a better position, where you will not be home-poor. That is where you have a home, but can’t afford anything else.
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