Buying A Home – Saving Money To Buy A Home

How Do I Save Money For A Down Payment?

One of the biggest barriers to homeownership in the country after any credit issues is saving money to buy a home. The money you need is broken down into 2 categories: down payment and settlement costs. Your down payment will vary depending on which loan program you choose.

The three most popular major loan programs are:

FHA – Federal Housing Administration

VA – Veterans Affairs Loan

Conventional – (Fannie Mae/Freddie Mac)

Each of these programs has its own loan limits, down payment requirements and qualifying guidelines which do occasionally change so please contact our office for the most up-to-date information.

How Much Of  A Down Payment Do I Need?

porch-g10f823626_1920Real estate closing practices vary widely from state to state and even county to county but normally fall between 4-7% of your purchase price. Where you live will determine exactly what you will have to pay.

Even if you are not required to escrow money for taxes, you may want to set aside this amount to assure that you will be able to pay those tax bills when they fall due.

You can get a good idea of what applies to your specific area by giving me a call at 904-514-8884 or by filling out this Contact Us Form.

What Is A Good Faith Estimate? 

Remember, all lenders and brokers are required to provide you with a Good Faith Estimate detailing the services you may be required to get and pay for in connection with your loan.

This Good Faith Estimate will give you a way to compare loans and see what your closing costs would be. Click the link below to find a list of coded names that describe the different fees, which may be associated with the services previously mentioned. These codes and names correspond to those found on the HUD-1 Settlement Statement.

Lenders will want to see that you have had these funds in the bank for the past 60-90 days and will request your last 2 months’ bank statements.

What If I Do Not Have Money For A Down Payment?

If you do not have a lot of money available to buy a home, here are some ideas:

  1. Borrow against your 401(k)
  2. Withdraw money from your 401(k)
  3. Get a gift from a relative
  4. Ask the seller to help with closing costs (called seller concessions)
  5. Get a grant from a non-profit organization

What If None Of These Sources Are Available?

The good news is that we have several Down Payment Assistance programs that will allow you to purchase a home even if you truly have no funds.

No…this is not like the infomercials.

In the past few years, with homes appreciating rapidly across the country, lenders have come out with new products to address these issues.

It is still possible that we may be able to offer you a loan that allows you to finance 100% (or almost 100%) of the purchase price of your home.

Call me at 904-514-8884 to arrange a private No-Cost and No-Obligation Consultation so we can review your situation and recommend the programs that will be best suited to your needs.

In our next lesson we will cover getting pre-approved and the CORRECT pre-approval process…



If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available… regardless of your credit!

Or if you have questions, call us or submit them here.

I hope you have enjoyed this step of our guide. We have many creative loan programs to fit your needs.

Please contact us at 904-514-8884 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

Until our next blog…

P.S. We have more valuable information and resources HERE!

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Steve Verrier
NMLS #228111

ANE Lending LLC.
NMLS #1999497

NMLS Consumer Access


Contact Us at ANE Lending - NMLS #1999497
13475 Atlantic Blvd
Suite 8
Jacksonville , FL 32225

(904) 514-8884

2019 All Rights Reserved. ANE Lending LLC. NMLS 1999497. Equal Housing Opportunity Mortgage Broker. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without prior notice. All products and queries are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions may apply. To view our NMLS Filings, CLICK HERE