Big Bear Real Estate gives home buyers more property value for the money. However, coming up with the down payment can be daunting to a first time home buyer. Zero down mortgages or low down payment mortgage options exist along with some creative financing alternatives and that is what we want to share with you today.
Believe it or not, 27% of first time home buyers obtained their down payments from financial gifts. These funds were obtained from relatives and friends. Many of the funds came from a unique wedding registry trend where guests contributed cash for a down payment instead of purchasing traditional items. People are getting creative about getting funds for a new home.
Earlier this year, Wedding Wire reported on Bridal Registry Accounts and Home Purchase Registry Accounts. These gifts are made by people who do not have any financial interest in the transaction. You’d need to check with your mortgage company about any limitations (or exceptions) but in general, a down payment will require at least 5% of the funds from your own savings account and not the registry.
Although this hit the news and created some excitement, the fact is that the Federal Housing Administration (FHA) encouraged lenders to establish bridal registry savings accounts for down payments back in 1996!
Another creative online option are online registries. Deposit a Gift was launched from New York in 2009. Today about 30% of their registry is dedicated to down-payment funds or home-improvement funds.
Now if you purchased a home 20 years ago, you would have needed a down payment equal to 20% of the purchase price. Today this isn’t the case, in fact, many people put down much less–as little as 3.5%. Those who qualify may manage to get in to a new home with zero down!
More traditional avenues to explore if you are buying a home for the first time, or qualify as a first-time home owner are:
- the Department of Housing and Urban Development (HUD) ,
- the National Council of State Housing Agencies (NCSHA),
- or the California Housing Financing Agency.
Veterans can find housing loan information from the Department of Veteran Affairs and will be interested to know that lenders may not require a down payment. Plus, these types of loans tend to get faster approval than others.
Low down payment mortgages can get you into a home for a 3.5% down payment and these FHA loans are backed by the government and so have more flexible guidelines.
Take some time to search Big Bear Real Estate (no log-in is required) or to call Big Bear Realtor, Will Rahill at (909) 547-4402 for help. Rahill Realty would be happy to get you into any of the Big Bear houses or properties currently on the market.