Home financing: Making a down payment and paying for closing costs

For many prospective home buyers, one of the biggest barriers to home ownership is having the funds for the down payment and closing costs. Buyers might consider these options for raising these funds:

  • Sell or borrow against an asset. Selling an asset, such as your car, will increase the amount of money you have available. Borrowing against an asset, such as your 401(k) or insurance policy, is also acceptable as long as you qualify for the additional debt.
  • Use gift funds. You may receive funds from a family member for your down payment. You will be required, however, to complete documentation that proves the money is a gift and not a loan.
  • Choose a low-down-payment program. Choose from the many low-down-payment programs available today, including FHA programs and, for veterans, VA programs. Among the low-down-payment options available today are those that include secondary financing – processed, approved and closed simultaneously with the first mortgage.
  • Obtain a low- or zero-point loan. This will reduce the amount of your closing costs substantially. You may be able to exchange points or closing costs for a slightly higher rate.
  • Ask for seller concessions. In some cases, sellers may pay for all or part of your non-recurring closing costs or carry back financing.
  • Consider non-traditional loan programs. You may be able to exchange points or closing costs for a slightly higher rate.
  • Obtain down-payment and closing-cost assistance. Today there is a wide range of programs that feature lower down payments and closing-cost assistance, including city, county and state programs.

Ask your mortgage loan officer about the different programs he/she has available to enable you to take advantage of these strategies. Your loan officer should also be able to help you decide which best meets your needs.

Kevin Petho (NMLS ID# _680418_) is a Loan Officer for

RBS Citizens, N.A. Citizens Bank is a brand name of RBS Citizens, N.A. (NMLS ID# 433960) and Citizens Bank of Pennsylvania (NMLS ID# 522615).

Direct Phone Line (716) 444-3800.


For more information call Colleen Kulikowski

(716) 650-0051

 

Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

Thinking of selling your WNY home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

What about one of these homes?

All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
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All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.


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About Kevin Petho Key Bank (716) 444-3800

Kevin Petho (NMLS ID# _680418_) is a Senior Loan Officer for Key Bank. Direct Phone Line (716) 444-3800.

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