What is Down Payment & How Does it Work?
Buying a home for the first time can certainly be an exciting experience. But for some, it can also be stressful, especially when it comes to financial details like down payments and loans. However, that’s no reason to despair. The professionals from Home Savings Fund understand that with down payment solutions, there can be a lot of questions, which is why we’ve shared some insight with you here.
We should note that Home Savings Fund offers down payment grants, which do not need to be repaid. Here’s all the information you need to know about Utah down payment loans!
What Exactly is a Down Payment?
A down payment is simply a portion of the purchase price of the home you’re trying to buy that needs to be paid upfront. It’s important to note that this part of the payment doesn’t come from a mortgage lender via a loan.
Why Do Mortgage Lenders Require a Down Payment?
The primary reason why most mortgage lenders require a down payment when you’re buying a house is to protect themselves. There are several reasons for this, the first being that those homeowners who put their money down upfront are much less likely to default on their mortgage loans. Additionally, since coming up with enough money to make a down payment requires a lot of saving and smart budgeting, it illustrates to mortgage lenders that you have the skills necessary to become a successful homeowner.
Lastly, down payments help lenders better recoup their losses should the home be foreclosed upon because they weren’t the ones responsible for putting all of the money towards its purchase.
What Are the Sources for Home Down Payments in Utah?
There are a number of different ways you can come up with the amount of money necessary to place a down payment on your Utah home, the first being by digging into your savings. Selling off some of your assets, like a vehicle, is also another way. Many people also borrow against their 401K or retirement plan to raise enough money.
Many down payment assistance programs exist that can help first-time homebuyers generate enough down payment money. This is where Home Savings Fund comes in. We offer down payment assistance grants to those who qualify.
Get the money you need for your down payment today!
If you’re in need of a Utah down payment loan, the professionals from Home Savings Fund can help make your dreams of homeownership come true. To learn more about the solutions we offer, contact us online or call (855) 369-7283(SAVE).