Down payment strategies for first time homebuyers in Austin
With the prices of properties across the country skyrocketing at astonishing speeds, home loan programs have become a refuge. Nonetheless, most of the home loan programs available in the market demands down payment, which tends to be a hard nut to crack for first time homebuyers in Austin. As a first time homebuyer therefore, you need to be on the alert and prepare yourself for the down payment, if you are to qualify for majority of the home loan programs available in the market. Below are some of the strategies that you could use in order to save for your down payment as a first time homebuyer in Austin.
Consider government-assisted programs
There are very many types of home loans available in the market today. There are those that are offered by private lenders while others are backed and insured by the government. The government assisted home loan programs tends to have lenient guidelines and attract low down payment requirements, to the much delight of first time homebuyers. That is why you should at all times look into the government assisted programs, as they will help you save the amount of money that you would have used when applying for other home loans.
Ask for gifts from your family of friends
Majority of the home loan programs available in the market today, gives you the leeway to pay your down payment using gifts. This being the same therefore, this is the best path you could follow in case you do not have much money to spend in paying your down payment. Therefore, in case you want to save on the amount of down payment that you are required to pay, you could lobby your family of friends to contribute for you. After they have contributed, you can then use the same to pay for your down payment. However, you will need to document carefully and effectively that you are paying the down payment using gifts, so that your lender can know upfront.
Tap your retirement account
In case you are a senior and you want to buy your first home in Austin, then most likely you have a retirement nest egg, where you save your resources. Therefore, in case you come across that you do not have enough funds to pay for your down payment; you could opt to tap into your retirement account, where you can get the money to pay for your down payment. This will in turn help to increase your chances of qualifying for a home loan in Austin. The good thing with retirement account is that the withdrawal charges are very low much to your delight.