Using gift money for your downpayment

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. As your mortgage sourcer, we 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 can’t come from anyone. Family members are the usual source. And sometimes an employer may also be acceptable. If this is an option open to you, please let us know. We can help you determine which loan programs accept gift funds for down payments and who may give the gift. We’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.

Down Payment Assistance

If a willing and able family member is not available, buyers now have the option of turning to a non-profit,state, county, or city for down payment assistance.

Generally, down payment assistance is in the form of a low or no interest 2nd mortgage that does not have to be paid back if certain criteria is met. Also, there are assistance programs for people in the low-to-moderate income bracket.

Zero Down Mortgage Loans

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. In addition to no down payment, these loans usually offer a competitive fixed interest rate and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.

If you are considering living in what is considered a more rural area, the USDA offers an excellent Zero Down Program. Let us help you find the down payment and mortgage alternative that’s right for you.

So, what are you waiting for! APPLY NOW!