Sunday, February 13, 2011 -
Here are some useful tips if you don't have the money for a down payment:
- Start a saving account until you have at least 3 - 5% for the down payment.
- Ask your parents or relatives for a loan or a cash gift for the down payment amount. Remember, if you are getting a conventional mortgage loan you will need to have at least 5 % of the purchase price to satisfy the lender.
- Set yourself a budget and stick to it. This will force you to look at where your finances are going and allow you to curb spending in specific areas.
- Consider asking the builder if they will consider sweat equity, which is really a credit back to the buyer for doing some work on the house such as painting or carpentry.
- You may also consider asking the seller to act as the financier or assume the seller's mortgage to the property.