Down Payment Help
For many homebuyers, saving up for a down payment can seem like a massive roadblock, especially with home prices skyrocketing. But there are mortgage options designed specifically for those who can’t save the standard 20% down of the loan amount—or don’t want to wait until they do.
What do I do if I don’t have enough for a down payment
- KeySavings Bank offers Down Payment Assistance Programs.
- Tap Into Benefits for First-Time Buyers.
- Supplement Your Income With a Part-Time Job.
- Sell Some of Your Belongings.
- Downsize Your Lifestyle.
- Receive a Gift from a Relative.
- Borrow from your 401(k).
Pros and Cons of a No Down Payment Mortgage
While having to put less cash down on a mortgage can seem tempting, there are some things to consider before signing up.
Pros of No Down Payment Loans
- You don’t have to deplete your cash reserves (or wait until you have saved enough) for a large down payment
- You don’t have to worry about paying mortgage insurance on top of your loan repayments, in most cases
- You’ll get more favorable terms from the lender if it’s a government-backed loan
Cons of No Down Payment Loans
- If the loan is not backed by a government entity, then it will likely come with a higher interest rate
- The lender will typically charge higher origination and funding fees
- You typically need a good credit score to be eligible
To answer your questions, please call and talk to a qualified and licensed Mortgage Loan Originator.
