Saving for a Down Payment? Read This

Saving for a Down Payment? Read This

Saving for a Down Payment? Read ThisThe traditional 20 percent down payment on a home might be a huge deterrent from purchasing one for the first time. While you might be hopeful about buying a home in the future but don’t know how you can scrounge together the down payment, there is a solution. These clever and creative ways can help you contribute to your savings in ways you probably never imagined. Therefore, in addition to protecting your new investment with a comprehensive and customized CT Home Insurance policy, heed the following advice for saving for your down payment.

Crowdsourcing.

People ask for public donations for a variety of reasons – medical costs, a good cause, and even business ideas. So, why should your first home be any different? Sites such as Feather the Nest and Hatch My House have helped to raise buyers over $2 million so far!

Ask the seller for help.

Asking the seller to contribute money to closing costs, or concessions, is a great way to reduce your out of pocket expenses. There are limits on concessions depending on the type of mortgage you get. For FHA mortgages, the cap is 6% of the sale price. For Fannie Mae – guaranteed loans – the caps vary between 3% and 9%, depending on the ratio between how much you put down and the amount you finance. Individual banks have varying caps on concessions, explains House Logic. Do your homework ahead of time and have your agent negotiate favorable terms for you.

Research government programs.

Certain government-sponsored programs are available to help with down payments and closing costs for home buyers. Depending on your career or your desired location, these could be applicable to you.

Look into employer assisted programs.

Employer Assisted Housing (EAH) programs help connect low- to moderate-income workers with down payment assistance through their employer. For example, in Pennsylvania, if you work for a participating EAH employer, you can apply for a loan of up to $8,000 for down payment and closing cost assistance. The loan is interest-free and borrowers have 10 years to pay it back, explains the article.

About Byrnes Agency

At Byrnes Agency, we strive to provide the best solutions at affordable rates. Our staff is here to assist you as you transition from one home to another, and our offerings can be customized in order to meet your specific needs. For more information about our products and services, contact us today at one of our three locations.

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Dayville Office

Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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Norwich Office

Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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Woodstock Office

Phone: (860) 928-7928
1226 Connecticut 169
Woodstock, CT 06281
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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