Question by : Are there programs that help with Down Payments or Down loans for first time home buyers? Best answer for Are there programs that help with Down Payments or Down loans for first time home buyers?:
Answer by ryan r
FHA Loans are there for 1st time homebuyers. Ask your realtor or loan officer and they should help.
Answer by Landlord
There are no 0 down loans, but some local programs. Most are from your city, any lender would know about them where you live. CA has a 10k one if you buy construction that was abandoned (not if you buy before it is constructed).
Brad Yzermans 951-215-6119. 100% financing home purchase mortgage loan, no down payment, no mortgage insurance! Murrieta bank owned, Temecula foreclosure, Menifee REO, French Valley, California, Broker
http://leafgardenpress.com/ USDA No Down Payment - No Mortgage Insurance Home Loan
The loan covered all of her costs, with no down payment required. Thompson, 38, qualified because of her low income and her need for safe housing. A single mother, she works three jobs and earns about $ 25000 a year. Her last rental home was an old, ... USDA mortgage program puts rural home buying within reach for some
The Reserve Bank of India (RBI) this month announced a few regulations to tame banks' unconstrained housing loan policies.
This includes a regulatory ceiling on the loan-to-value (LTV) ratio
of home loans and a hike in the risk weightage for loans above Ra75 lakh to 125%.
"Asset prices in India, as in many other emerging market economies, have risen sharply in a short time, which is a cause for concern," said RBI governor D Subbarao at a press conference.
The down payment, which is defined as the difference between the purchase price of a property and the loan amount, is the upfront payment to be made by the borrower.
For banks, this is the buyer's commitment �?" it acts like insurance, because if the buyer defaults, he will not only lose his property, but his money as well.
Also, a margin from the market value stands as an additional security for the banks if property price happens to recess.
Therefore, if there is a fall in repayments, the bank can still recover its losses.Banks have been providing seamless credit facilities to all people thanks to the cut-throat competition among them, but on the other side, this is causing their non-performing assets (bad loans) to grow. Therefore, the new regulations can affect their business, but it definitely helps them play on the safer side.
Making a 20% down payment may not be realistic for many potential home buyers. So house owners who are looking for home loan refinancing or mortgage equity loans may find the going tough.
As there is no set upper limit to the amount you can pay as down payment, it all depends on how much money you can manage to set aside.
The more you are able to manage, the lesser will be your loan requirement, resulting in easier monthly payments or shorter loan tenure.
Here are a few down payment facts a borrower should know:
Down payments normally do not include costs such as stamp duty costs, registration charges, property taxes and transfer charges.
Instead of it, banks include these costs in the total loan amountThe older the property is, the more apprehensive banks are to finance it. And you will have to fork out more. This is based on the bank's evaluation, as market values of buildings reduce as age increases
For loans taken against construction of houses, or ongoing projects, the responsibility to ensure that the construction is being carried out in accordance with the sanctioned building plan lies with the bank. The RBI has also made strict directives to all banks to check that housing loans are being sought for authorised structures only
If you are now thinking about ways to best manage your down payments, here are a few inputs:
Savings, tax refunds, bonuses, fixed deposits, shares etc are of course, golden options to meet your money requirements. Those who are looking for a home in future, should start saving now
Regular savings can build up a sizable down payment amount. For immediate requirements, depend on near ones or go in for a personal loan. But beware of personal loans with higher interest rates
Here are some other options which you can look into:
Gold loan: If you have gold, taking a gold loan is always better than a personal loan. The process is also simpler. Diminishing interest rates start from 1% per month, and you need to pay the interest only for the number of days your pledge is maintained.
Collateral securities: Many banks have schemes to include pledge of additional property, fixed deposits and insurance policies to a loan, to enhance the loan amount.
For instance, if you are purchasing an apartment for Rs45 lakh, you may need to pay Rs9 lakh (20% of Rs45 lakh) as down payment. If you attach some other property owned by you or by your spouse (if he/ she is a co-applicant), you can borrow more under the collateral security or with a loan-against-property scheme of the same bank. Additional amount availed can be used for making the down payment.
Proportionate release option: Many banks have a proportionate release option with developers. Normally, banks release the loan amount only after you have made the full down payment. Under proportionate release, instead of paying the down payment as a lump sum, you have an option to make the down payment in installments until your get possession of the property. This will be a more flexible option to manage money.
Related Home loan down payments Topics
