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Down Payment- No Down Payment

What Down Payment?

The amount you have available for a down payment will affect what types of loans for which you can qualify. Generally, a conventional mortgage (one guaranteed by Fannie Mae or Freddie Mac) requires a 20% cash downpayment.

Sunrise Vista carries an arsenal of loan products which can help you get into a house for less than 20% down.  Fill out the form below and a qualified loan officer will contact you to review all of your options.

Tips for Accumulating a Down Payment

  • Save
    Look for ways to reduce your monthly expenditures to save toward a down-payment. You could enroll for an automatic savings plan at your bank to have a portion of your payroll automatically transferred into savings. Most people save a couple of years for their down payment.
  • Borrow the down payment from your retirement plan
    Check the provisions of your retirement plan. You can borrow funds from a 401(k) plan for a down payment or make a withdrawal from an Individual Retirement Account. Be sure you understand the tax consequences, repayment terms and/or possible early withdrawal penalties.
  • Gift from Family 
    Parents and other family members are often anxious to help children buy their first home and may have the means to give you a gift of money for a portion or all of your down payment.
  • Loan from Employer 
    Your employer may be willing to help you buy a home, by offering a small loan towards your down payment based on payroll deductions.

 

Grants, Gifts and Creative Financing

  • Non-profit down payment assistance charities
    National Home Buyers Fund, can provide down payment assistance. For more information, visit their website. The recent passing of H.R. 3221 “Housing and Economic Recovery act” makes programs of this nature  outlawed after October 1, 2008. Contact us immediately if you intend to use this program.
  • ACCESS, CHDAP & Other Loans
    Programs of this type are funded by City, State or federal bond programs. They always have income limits based on the size of your household.  If eligible, this type of down payment assistance provides a very low rate second or third mortgage for the down payment. Payments are sometimes deferred. Often have special underwriting guidelines and can usually only be used with one type of loan program. Please contact us for a current list of available Sacramento and Citrus Heights down payment assistance.
  • “Carry Back” Mortgage
    In the case of the seller “carrying back a second mortgage”, the seller loans you part of his or her equity. In this scenario, you would finance the majority of the loan with a traditional mortgage lender and finance the remaining amount with the seller. Typically you will pay a slightly higher interest rate on the loan financed by the seller. We have several realtors that are familiar with this procedure and can effectively negotiate it on your behalf.