When buying a home, the down payment is usually the biggest up-front cost. A down payment secures your home purchase, decreases your loan-to-value utilization, and helps you get a better APR. But coming up with the cash for a large down payment can be tough. Here are some tips on how to do just that, from My Home Town Builders!
- Get Out Of Debt!
The first thing you should do when considering the purchase of a home is pay off any outstanding debts you have. By paying down high-interest debts like credit cards, you can stop wasting money on interest payments – and start stashing it away for your first down payment!
- Start Budgeting And Saving
Using a budgeting tool like Mint, you can cut down unnecessary expenses like eating out, clothing, hobby purchases, and other items. Tracking your spending helps you save more – if you can save just an extra $500 a month, you’ll have $6,000 more for a down-payment within a year!
- Tap Into Your IRA
If you have an IRA, you can use up to $10,000 in IRA funds to purchase your first house – without a negative tax penalty! And if you’re married, both you and your partner can do so, which allows you to pull up to $20,000 for a down payment.
- Consider A Specialized Loan
If you can’t afford a down payment, you may be able to get a specialized loan instead. These include FHA loans for low-income individuals, VA loans if you or your spouse is a veteran, USDA loans for rural residents, and Conventional 97 loans, which require only a 3% down payment.
- Contact My Home Town Builders!
At My Home Town Builders, we have a variety of “no-money-down” purchase options that can help you get the Central Florida home you’ve always dreamed of – with no money down!
Contact us now to learn more about our lending options, and how we can help you purchase your first home without a down payment!
