USDA Loans

In part one of this two-part blog series, we looked into some basics on how you can receive assistance in affording a down payment on a home. There are a number of resources here, from low down payment mortgage programs to government assistance and several more — and being aware of these might make a big different for your homebuying approach.

At Primary Residential Mortgage, we’re here to offer a wide range of mortgage rates and home loan services to clients in Guilford and nearby areas, including assistance with everything surrounding your down payment. What are some other options available to you as you look for ways to afford a down payment on the home of your dreams? Here are a few.

Withdrawals or Loans from Retirement Savings

There are certain down payment options that will require some definite care and consideration before moving forward, and this is one of them. You may be able to take a loan or withdrawal from your 401(k) or other retirement savings, but there are some things you should know first.

This method may help you avoid paying taxes and penalties on the withdrawals, as long as you repay the account within five years — though you will still have to pay interest on the loan. It’s important to speak with a financial advisor before taking this route, as it could have some serious implications for your retirement down the line if not done correctly.

Selling Investments or Other Assets

This is another method that should be approached with caution, as it can have long-term effects depending on what you’re selling. That said, selling investments or other assets can be a quick way to come up with the cash you need for your down payment.

Before taking this step, it’s important to consult with a financial advisor to see what kind of effects selling these assets could have on your long-term financial security. They may have some recommendations on how to best go about this.

Down Payment Gifts or Loans from Family

Another route some homebuyers take is to receive a down payment gift or loan from family members. This can be a great way to come up with the money you need without having to worry about the implications of taking out a loan yourself.

Just be sure that any gift or loan is properly documented so that there are no issues further down the line. Your mortgage lender will likely have some specific requirements for this.

USDA 100% Financing

If you live in a rural area, there’s a reasonable chance you qualify for a USDA loan from the US Department of Agriculture, which are meant primarily for those who live and work in these areas, such as farmers for instance. Such loans come with 100% financing and no required down payment, so if you’re able to qualify here, the down payment ceases to be a concern for you whatsoever. All of Guilford qualifies for this loan based on geographic location, so get in touch with our team to learn more about it!

These are just a few of the many options available to you when it comes to affording a down payment on your home. For more on this, or to learn about any of our quality mortgage services to clients in Guilford and surrounding areas, contact our team at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.