Down payment options
If you're struggling to come up with a down payment for a home loan, there are several options available.
Government-Sponsored
You can apply for government-sponsored loans or find a home loan with low down payment options. There are also some programs for first-time home buyers that will pay some or all of your down payment. You should consider your eligibility, as many of these programs have different requirements. For example, some programs require a low credit score and are only open to first-time home buyers.
payment
A larger down payment will also make you a more reliable and competitive buyer, and it will also make your home purchase less of a hassle.
first mortgage
The first mortgage is a conventional loan through Fannie Mae or Freddie Mac, while the second mortgage is a home equity loan of about 10% of the home purchase price.
advantage
You can take advantage of these offers to lower your mortgage payments and make your dream home a reality.
20% down
If you can’t put 20% down, you may be able to qualify for a piggyback loan, which is a combination of two loans.
HDFC Bank
A large down payment will also increase your home equity, which you can use for major expenses like remodeling.
home equity
The offer also includes a 50% discount on the processing fee. If you’re a corporate customer, you can also get a discounted rate of Rs. 2,000, plus applicable taxes.
combination
- The beauty of this combination is that it will save you from the hassle of making two payments. If you can afford a higher down payment, you'll have more negotiating power. If you don't have 20% available, you'll need to choose a different type of home loan. Some lenders offer jumbo loans for buyers who need to borrow a large amount of money. If you're able to put 20% down, you'll have a much lower monthly payment and lower interest rate. This will free up more money in your budget.
lender credit
- Another incentive is the lender credit. This act as a cashback reward, and allows the borrower to recover the cost of closing costs. However, it typically carries a higher interest rate. It is important to ask about the rebate when discussing the loan with a lender. Depending on the lender, the cash incentive can be as much as $2,000.
processing fee
- The processing fee for home loans is one of the most important costs of a home loan. Usually, this fee is one time, and it is not deducted from the loan amount. It is also known as an administrative charge, and it is charged only after your application has been approved. While processing fees may seem expensive, the good news is that they are not unaffordable.