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!

  1. 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!

  1. 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!

  1. 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.

  1. 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.

  1. 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!