When it comes to buying a home for the first time, finding the necessary funds for a down payment is often a struggle, but it doesn’t have to be. Utah first-time homebuyer down payments can be a bundle, but don’t despair. There are many assistance programs out there you can take advantage of, like the grants from Home Savings Fund.
Here are five essential strategies to help you obtain the funds you need for a down payment.
1. Gifts & Loans from Family
One of the best ways to gather the funds you need for a down payment is to solicit the help of friends and family. Such gifts are allowed by lenders, but it involves a bit more than simply handing over the funds. If you put a down payment on your home that consists of a gift, you’ll need to provide written proof from the friend or family member making the gift that they’re financially able to do so.
2. State & Local Down Payment Assistance
There are a variety of state and local down payment assistance programs for first-time homebuyers. Nonprofits like Home Savings Fund, as well as other foundations and government agencies, offer low-interest loans, grants, and other funding opportunities to take advantage of.
3. Low-Down-Payment Mortgages
First-time homebuyers on a strict budget may find that low-down-payment mortgages are the best way for them to purchase a home they can afford. However, a small down payment can often mean more in mortgage insurance costs.
4. Crowdfunding a Down Payment
Nowadays, crowdfunding is a big thing, and if you have thousands of social media followers, it might not be a bad idea to try and solicit funds for a home down payment. But there can be certain fees associated with doing so that you should be aware of and other requirements, such as working with a specific mortgage lender.
5. Retirement Account Withdrawals/Loans
Drawing from your retirement account or receiving a loan is another way to pay your down payment when purchasing a home. This option can pose a potential risk for some, however, especially when withdrawing from their 401(k) or IRA before reaching the age of retirement.
Contact us for more about first-time homebuyer grants in Utah
For more information about first-time homebuyer grants, contact Home Savings Fund today online or call (855) 369-7283.