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Ways to Save for a Down Payment

One of the biggest hurdles to buying a home is coming up with a 20% down payment. Especially if you are a first-time buyer. The good news is there are a lot of programs available and a lot of creative ways to work up a down payment. Some you may not have thought of before. Handler Homes believes that owning your own home is a part of the American dream. And we want to help you achieve that dream by showing you how to save for a down payment.

Special Lender Programs

For starters, it is important to note that needing a 20% down payment is not actually a necessity. There are numerous programs out there that can help you with a loan with as little as 3-3.5% down. Be careful though of mortgage insurance. Some lenders require mortgage insurance if you only put 3% down to protect themselves and this can add up to $300 more to your monthly expenses. Many reginal banks, however, have their own first-time buyer programs that do not require mortgage insurance. So, be sure to check out all of your options.

Seller Assistance

Sellers in a hurry or ones that are just wanting to settle up property (like when a parent dies), may be willing to assist buyers with closing costs. This is called seller concessions and there are some rules revolving around them, but it is worth talking to your real estate agent about. They may be able to work out a deal for you with the seller. And ultimately, paying less in closing costs means being able to put down more money for your down payment.

Crowdsource

Ever heard of Kickstarter? You probably have. Many people use services like Kickstarter to fund their creative projects. But did you know that similar services exist to help people buy their dream home? It’s true. Sites like Feather the Nest and Hatch My House work similarly to Kickstarter and help you create a fund to raise money for your down payment.

Researching all of the things that you need to do and have in order to own a home can certainly seem overwhelming. But with the help and guidance of your real estate agent and the resources we listed above, homeownership is not out of reach. And if you need help obtaining a loan, we work will several trustworthy lenders that no doubt would be happy to assist you. Give us a call today to get started on your path to owning your own home.

By Handler Homes 2-20-2020