Purchasing a home has been deemed a huge investment made once in a lifetime. A majority of lenders would look forward to knowing about your affordability prior to making the purchase or signing the loan. There may be several mortgage loans made available not requiring any money down payment, as you would be required to bring 20% of the total amount to the closing table.
In case, the idea of saving a significant amount appears a daunting task, find below few options that would be worth exploring.
- Asking your family for assistance
Using gifted money for covering your down payment has been deemed acceptable for most lenders, as long as you would be meeting the basic requisites.
Foremost would be money, which would come from people related to you. However, an exception would be you being engaged and your spouse is paying for the house.
Secondly, the money should be gifted and not any kind of loan. In addition, it should be documented for backing it up. It would be inclusive of letter from the person gifting the money. The letter should be explaining what the money has been given for along with a copy of their respective bank statement.
There would be no gift tax applicable on gifted amount being given as down payment funds. However, the person providing the money should look for prospective tax applicable to him.
- Asking your employer for assistance
In event of you having a steady job, the down payment could be acquired from the employer. A majority of employers would be offering specific programs to help you make the most of for your down payment needs in the form of grant or loan.
Most loans are interest free and you do not need to repay grants. However, you would need to stay in the home for significant length of time. Most companies would offer matched savings program whereby the money contributed by you along with the employer would be going towards down payment for your home buying needs.
- Searching for down payment assistance program
Apart from the family and employer, you could seek assistance with down payment in Florida from a reliable down payment assistance program. These programs would be offering assistance in terms of money to potential homebuyers. These programs could be run by non-profit organizations or state agencies. They would be working on similar lines as popular employer programs. Funds would be distributed based on specific program. However, you would be required to meet income level requisites or purchase the home in a particular area to become eligible for the program.