March 28th, 2016 6:04 AM by Jackie A. Graves
Saving for a down payment does not have to be
an impossible feat for your would-be buyers. HouseLogic recently featured
several resourceful ideas to help them save up for a down payment on a home.
Maybe instead of a traditional wedding
registry, your buyers use a site geared to saving up for their future home.
Sites like Feather the Nest and Hatch My House can be sites used to raise
funds for a down payment. Hatch My House says it’s helped raise more than $2
million in down payments on home purchases.
Read more: 70% Unaware of Down-Payment Assistance
Ask for the sellers help.
The home seller may be willing to help buyers
with the closing costs, via seller concessions. However, realize that lenders
do limit concessions, depending on the mortgage type. For example, the FHA’s
mortgages have a cap of 6 percent the sales price; Fannie Mae-backed loans have
caps between 3 percent and 9 percent.
Explore government options.
Some home buyers may find down payment help
from state, local, or even national programs. For example, the U.S. Department
of Housing and Urban Development offers several programs, such as assistance
with down payment and closing costs. Most HUD programs are geared to
individuals who meet certain income or location requirements. Check out links by state. HUD also offers
assistance through its Good Neighbor Next Door Sales
Program for law enforcement officers, firefighters, teachers,
or EMTs. For veterans, the VA offers loans that
often require zero down payment or private mortgage insurance.
See if your employer will help.
Employer Assisted Housing (EAH) programs can assist
low- to moderate-income employees with a down payment through their employer.
Ask the human resources or benefits personnel at your employer if your company
participates in an EAH program.
Look into special lender programs.
Some lenders offer specialized programs to
help too. With FHA mortgages, borrowers may need just 3.5 percent for a down
payment (but make sure they take into account mortgage insurance, which could
add another $300 to a monthly mortgage payment). Some lenders, such as TD Bank,
offer a 3 percent down payment with no mortgage insurance program. Check with
your regional bank for possible down payment assistance or first-time buyer
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