So you want to buy a house in Johnson County Kansas, Great! So how do you go about saving that down payment? The good news is that recent changes by mortgage lenders allow you to purchase a home with as little as 3% down payment on a conventional mortgage and 3.5% on FHA.
1. Gift Funds - This is probably the quickest and easiest way to gather your down payment nest egg. Both conventional and FHA mortgages allow 100% of your down payment to be gifted to you by a family member, friend or secret admirer. Insider tip: Tell your parents that you want to move back into the basement at home to save a down payment, check books open quickly after this discussion.
2. Local Home Programs - This is extrememly creative since you don't actually have to save a down payment. There are several programs in Johnson County that will provide you with a down payment including the Kansas Bond Fund and the Johnson County First Time Buyer Bond Fund. Insider Tip: While these programs are great when you have no other option, they can have higher interest rates and have will have income and debt restrictions that may make it harder to qualify.
3. Sell Something - Better yet, sell a lot somethings. Ebay, craigslist and garage sales are great places to sell unwanted stuff to gather your down payment. Insider Tip: If you have already applied for a loan, ask your loan officer about how to document the proceeds from your sales as they will want a paper trail to prove where the money came from.
4. Talk to your Boss - Do you remember the employee manual they gave you during orientation? (Neither do we) Many companies have a housing assistance program, especially local and National Unions. Insider Tip: If your company doesn't have any type of Employee Housing Program, ask them to start one. We can show them how!
5. The Old Fashioned Way - I know this sounds a little bit crazy but you can always save for one yourself. The average first time buyer in Johnson County Kansas buys a $150,000 home, that means you only need to save $4,500 to buy that first home. Insider Tip: Ask your loved ones to match a percentage of the amount you save. I don't know of too many able Parents or Grand Parents that wouldn't assist, especially if you show the willingness to bring your hard earned money to the table.
For most first time buyers the down payment is the biggest impediment, try one of these solutions or combine several and you will find yourself in that first home sooner than you think.
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