Want to buy a house, but don’t have a down payment?
You are not alone. First-time buyers often have to plan and save for a few years. Start by knowing how much down payment you need to pull together. There are many programs not requiring 20% down. A buyer applying 20% of the purchase price as down payment can avoid mortgage insurance. But – there are 3% and 5% down payment loan programs. Call or email for a few great mortgage loan offers to get an idea what your budget should be, and with that, how much down payment you’ll need.
- With the end goal as your target, start watching every expense and purchase. Start eliminating all “frivolous” purchases.
- Create a separate savings account just for your down payment. Have an automated deposit come out of each paycheck.
- Buddy up with your spouse or friend and make a game out of it, start a little friendly competition and see who can meet the goal first or save the most each month.
- Save unexpected money, such as a larger tax refund, bonus or gift.
- Find a side business or hustle, a little freelance working or selling on Ebay.
- Create a budget for your mortgage, if you plan on going from a $1,500 monthly rent payment to a $2,000mortgage payment, start putting that extra $500 away now. This will boost your savings account and help you assess how you’ll manage the mortgage payment once you do buy a house or condo.
- This may be hard in the Valley, but see if you can downsize the rental for a year or two. Rent cheaply as possible to save up for the house purchase.
- There are a few down payment assistance programs for buyers that qualify (maximum income and minimum credit scores, generally).
Again – please contact me so that I can recommend a knowledgeable lender to provide any and all mortgage information you need.
