The document discusses the importance of saving for a down payment and outlines the different mortgage options and their down payment requirements. It provides strategies for saving money, including setting a deadline, paying off debt, creating a dedicated savings account, automating savings, and exploring IRA options for first-time home buyers. The overall message emphasizes that while saving for a home is challenging, it can be a rewarding investment in one's future.

1. Saving for a Down Payment

2. Is it time to buy?
• Inventory in Union County is high, which often
results in lower prices.
• Interest rates are low but rising slowly.

3. But do you have the down payment
saved?
• If you’re eligible for a VA
(Veterans Administration)
loan, you don’t need any
down payment.
• FHA mortgages require a
down payment that is 3.5%
of the purchase price.
• Conventional mortgages
require a down payment of
5-20% of the purchase
price.

4. How much
money do
you need?
To buy a $300,000 home,
you’ll need:
• $0 if you are eligible for a
VA loan
• $10,500 if you will use an
FHA loan
• $15,000-$60,000 if you will
use a Conventional loan
* A big down payment will
reduce your loan amount
and therefore reduce your
monthly payments.

5. Will you qualify?
• Your credit score will
determine what kind of
mortgage you will qualify
for.
• The first thing you should
do is contact a real estate
professional and a
mortgage representative
and learn your options!

6. How do you save money?
1. Set a deadline. Setting a
deadline can be a
powerful motivator to
accomplishing great
goals, and buying a home
is a pretty big goal! So
pick a date - one year
from today, three years
from today, maybe on
your 30th birthday. Once
you know where you are,
it will make setting a
timeline easier.

7. How do you save money?
2. Pay off Debt - If you have any
outstanding debt then your first
step is to pay down or pay off as
much as you can. Not only will
this repair your credit score, but
it will also let you save even
more money for your down
payment. Take the highest
interest rate one first, get it paid
off, and then get to work on the
next one.

8. How do you save money?
3. Create a “Down Payment” account - By
opening a savings account just for your
future home purchase, you help lessen the
likelihood of tapping into that money for
other things. Check with your bank or even
local credit unions to see if they offer any
special interest rates or programs for first
time home owners looking to buy.

9. How do you save money?
4. Automate your savings - Pay Yourself
First. Once you’ve figured out how much you
can sock away every month, have that amount
automatically withdrawn from your account and
put into savings before you even see your
paycheck!

10. How do you save money?
5. Ask about IRAs - Check to
see if your IRA has any first
time home buyer credits.
Some will allow you to invest
a considerable amount of
pre-tax dollars and withdraw
without penalty for home
purchases and they often
provide more return on your
investment than a traditional
savings account. Check with
your IRA provider or financial
advisor first.

11. Everything worth having is worth
working for!
Saving for a home of your own can be challenging,
but it can be exciting too. The feeling of reward
and accomplishment is extraordinary. Start with
these steps and very soon you too can enjoy the
long term benefits of setting down roots and
investing in your future.

12. For more information, contact us!