When it comes to a first-time home purchase, there are numerous variables to take into account. Even with all of the pieces in place, and a go-to attitude, there may still be some aspects of your mortgage that you have to contend with that you may not be fully prepared for.
The first and most crucial step for a mortgage application is the down payment, the launch pad in which all things get moving and you can begin your journey to homeownership. While many who embark on the mission of attaining a home lay the foundation for a down payment right out of the gate, there are still many who don’t have the means even after putting all the work in.
This is where a Flex Down Payment comes into play.
What this mortgage option provides you with is the opportunity to have a third party provide you with a portion of your income for your downpayment. The versatile aspect of this approach is that it is not specific to a lending party. While the option to acquire a loan or line of credit from a lender or bank is there, you can also use other assets at your disposal, such as the equity from a preexisting property.
While this option can be enticing to help you acquire the initial 20% of your down payment that is ideal to secure your mortgage, you still must be vigilant about what your assets are. So if you have previous equity, if applicable, look at what your property’s value is hovering around. Additionally, work with your third-party lender to see what your maximum loan rate is.
Once you have taken these steps, you can take a look at your assets and see if moving forward with a Flex Down Payment is right for you! Contact us today to learn more about your mortgage options!