MyLenderForLife.com

Phone:   (540) 450-2700

Many people never buy the home of their dreams simply because they don’t think they have enough money for the down payment. They’ve been made to believe through the years that they need 10 or 20 percent of the purchase price in order to buy a home. Well, this simply isn’t true.

Quite honestly, there are a variety of financing options for people who have little or no money for a down payment. As By Referral Only Mortgage Loan Consultants, our mission is clear: To Help People. That’s why we’ve created this special report for you with no obligation.

This report is specially designed for people with good credit and a good income, but who just don’t have much money for a down payment. Good credit also means little or no credit as long as we can establish a record of paying your bills such as Electric, Gas and Telephone.

Loan Options Available

Option 1: FHA Loans

Although this isn’t a "No Money Down" option, the FHA loan is by far one of the best alternatives for people who want to buy a home and don’t have much money to put down. With an FHA loan, you could put down as little as 3%. Plus, FHA loans are easier to qualify for.

Now, 3% may seem like a lot to come up with, but many people find that when they put their minds to it, 3% is actually possible. While you can’t "borrow" the 3%, you can get a "gift" from a family member, borrow from your 401k, or sell some "stuff" you have lying around. At the end of this report, we’ve included a special section with great ideas for raising this small amount required for an FHA loan.

FHA loans do have requirements and restrictions. Not all town homes and condos qualify, and there is a maximum loan amount (In Frederick County it is $121,296.00 in Clarke and Warren Counties it is $212,800.00). But if you’ve been dreaming of a new home and think you might be able to "gather up" 3%, this is a great way to go.

Option 2: Guaranteed Rural Housing (GRH) Loans

The USDA Guaranteed Rural Housing Loan is a first-time homebuyers’ program that offers no down payment, fixed-rate, 15 or 30-year loans. There are restrictions as to maximum household income, as well as the price of the home you are buying. These loans are not available in the Cities of Winchester or Martinsburg. Depending upon whether or not the Seller is willing to pay the closing costs you may not have to have any money at time of closing.

Option 3: Special Loan Programs

Special loan programs come and go quickly. There is one available now that will allow the seller to provide the 3% down payment required for a home loan. That means no money out of your pocket if you know how to negotiate with the seller! There is another program now that requires only 2% including closing costs! Wow! That’s practically the same as "no money down!!"

Option 4: Primary and Secondary Financing

This is a Loan Package where you actually have two loans. The primary loan of usually from 80% to 95% Loan to Value (LTV) and the secondary loan making up the balance of the purchase price. These loans are secured by two mortgages, one on the primary called a 1st Mortgage and one on the secondary called a 2nd Mortgage. The Secondary Loan can either be made by the same lender as the first, another lender or the seller. Generally the 2nd Mortgage is for a much shorter period of time than the first. As with any mortgage there are certain restrictions and requirements on this type of financing.

Option 5: Lease-To-Own

With a lease-to-own, you essentially lease a home, but make larger payments in order to begin accumulating a down payment. For example, if a house would normally lease for $800, you might lease it for $1,000/month, with $200/month going into a special account. At the end of a specified period, you buy the home using the money in that special account as your down payment. However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.

Think of this option as renting with a forced savings account. If you can find someone willing to do this, it’s not a bad option. However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.

Where To Begin

So, how do you find out what type of loan programs are available for you right now? The best way is to work with a mortgage broker like us. We keep up to speed on these special programs and can help you find the financing option that is best suited to your individual needs and abilities. If you are seriously considering purchasing at this time your next step is to get pre-qualified. The best way to do that is call and come in for an appointment. One of our Mortgage Loan Consultants will be pleased to provide you with a Free pre-qualification.

We’ll do more than get you financed!

Financing is only the first step in the home-buying process. If you do not yet have one, We can recommend a Real Estate Professional who is dedicated to helping people like you get into the home of your dreams. We are dedicated to delivering world-class service all along the way. If you’d like to know more about your financing options or would like to be Pre-Qualified please call us today. Heritage Home Funding Corporation (540) 450-2700 or email us at hhfc@mylenderforlife.com

Simple Ideas For Raising Money For A Down Payment…

1. Have a garage sale. You’ll be surprised how much money you can raise this way, especially if you’re willing to give up some of the junk you’ve been hoarding for years!
2. Raid your savings. Even if you’ve been trying to keep a little stashed away, this is important! If your kids have a savings account, ask them if you could borrow from theirs as well!
3. Borrow from your retirement fund. Many retirement funds (401k, IRA, etc.) have provisions for you to borrow from them for important reasons. This counts as an important reason! Check with your plan administrator or your financial advisor about this option! The nice part about this is that as you repay your loan, you pay the interest to yourself!
4. Ask your family. This is probably the hardest thing for some to do, but you might be surprised at how willing a family member would be to help you buy a house, even if they’ve said "no" to you before when you tried to borrow for other things! If you do this, you’ll need a form for your banker stating that this is a gift and not a loan. (Yes, you can still repay your family member. It just can’t be a formal loan!)
5. Sell something. If you look around your house, you might find items that have pretty good value, but that you haven’t used in a long time. An old coin collection; an old musical instrument that no one plays anymore; an extra freezer you don’t really need; a second (or third) car you could do without. Often, the cash from selling these items can add up quickly!
6. Win the lottery. Hey, somebody’s going to win! Might as well be you!