Home Loan Down Payments in St. Louis, MO
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By Dave Puzniak
A home purchase is in your future, NOW is the time to start thinking about a down payment. When considering buying a home, the down payment amount plays an important role. So, what is a down payment?
A down payment is a percentage of the home’s purchase price, which is paid upfront to obtain home financing; it’s viewed as an investment, from the buyer, in the house. While there are programs that have little to no down payment requirements, it’s always wise to have money set aside when purchasing a home. A home is typically one of the most substantial lifetime investments, and it is considered best practice to begin with money down.
While there are many ways to gather a down payment, here are 5 of the most common methods:
1. Tax Time, Right Now! Over 80% of tax filers are expected to receive a tax refund this year. Why not use that nice refund to help purchase a dream home?
2. 401K or Other Investment Accounts: A retirement and/or investment account is a common source for a down payment. Of course, consult a financial, tax, or legal advisor before withdrawing or making any decisions about investment accounts.
3. Down Payment Assistance Programs: There are county and state programs designed to help homebuyers get into a home through assistance with a majority of, if not all of, a down payment. There may be credit, property, and/or income limitations to these programs. Check with a loan officer for eligibility.
4. Gifts From Relatives: Sometimes, your family can be of help; it’s common for parents to assist their children in the purchase of a home. As long as the assistance comes from a relative and the funds provided are genuinely a gift (no repayment is intended nor required), it is an acceptable source for a down payment.
5. The First Integrity Mortgage Services Power Plus Loan Program: This unique product can ONLY be found at First Integrity Mortgage Services. Not only will it reduce the down payment to only 5%, but it can also eliminate without taking a rate hike for the program.
The best down payment option will vary from buyer to buyer and will depend on their current financial situation. Regardless of the method, set up a consultation with a lender to discuss all options. Creating a clear and concise action plan will make the home buying process easier.
Licensed mortgage professionals at First Integrity Mortgage Services use their experience, expertise, and the special programs available to discover your goals, present multiple relevant options, and recommend the program that best meets YOUR needs!
Don’t sell yourself short. Call today to start your home buying path, 314-878-7900!
Contact David Puzniak at First Integrity Mortgage at 314-486-2652 or dpuzniak@firstintegrity.com for a complimentary loan preapproval or refinance assessment. NMLS# 559106.