Down payment funding alternatives

For many buyers, especially first-time buyers, saving up the funds for the down payment can be a seemingly insurmountable hurdle to home ownership. This doesn’t have to be the case.  I can help you find creative ways to come up with your down payment.

Using a gift for your down payment
One way to fund a down payment is by using a gift.  For many loan programs, a gift may be used for a portion or all of the required down payment.  Money given as a gift for a down payment must come from a family member.  And sometimes an employer may also be acceptable.  If this is an option open to you, please let me know.  I can help you determine which loan programs accept gift funds for down payments and who may give the gift.   I’ll also supply the gift letter that the person giving the gift is required to sign.  The gift letter states that the funds are a gift and will not be paid back.  The gift giver will also be required to give us a copy of their bank statement showing the gift being deducted from their account. 

Down payment assistance charities

If a willing and able family member is not available, buyers have the option of turning to a down payment assistance program, either through the County or State.  This can be a good option for buyers who don’t have other means of securing a down payment. 

Zero down mortgage loans

VA - Service persons and veterans can qualify for a VA Loan that requires no down payment.  VA Loans are guaranteed by the U.S. Department of Veterans Affairs.  While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.

USDA - These loans are also available.  In addition to no down payment, these loans usually offer a competitive fixed interest rate, lower Private Mortgage Insurance, and limited closing costs.  The downfall is these homes have to be in a specific location.  You can click on this link to check on eligible areas:  https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp 

Let me help you find the down payment and mortgage alternative that’s right for you.  Call, text or email me today, Sherry Bitner, 941-504-1445 or email me at Sherry@SherryBitner.com