How to leverage down payment

Question

i am starting with very little cash. how (and who) do you leverage a down payment?

Nathan Gesner · Answer

If you borrow money for the downpayment, you are borrowing to borrow. This is known as over-leveraging and it's why people end up on the foreclosure train. It's a foolish move that I wouldn't recommend.

Work hard to increase earnings. Reduce expenses. Save up. Invest.

Great rewards require hard work. I don't know anyone that became a millionaire and stayed one by taking the easy route.

Carlos Ptriawan · Answer

Follow what @Nathan Gesner says, basically your problem to fix is not to  create debt but you have to increase your income, by "working" that gained substantial more salary/income.

Joshua Filkill · Answer

Check with local lenders about down payment assistance programs so you're not over-leveraging as others have mentioned. Depending on your strategy, you can find a great deal and then bring in a trusted partner to fund the deal.

Reid Chauvin · Answer

@Marijo Holt - there are down payment assistance programs out there that allow you to get a second mortgage to help cover the upfront costs of the mortgage you use to buy the house. The money is not free though, and you do pay it back over a period of time. Speak with a lender who offers such programs. Feel free to reach out if I can be of further assistance!

Jacob Hornberger · Answer

Be careful trying to get another loan for the down payment. Some loan products do not allow you to have a secondary loan to cover the down payment. Talk to your lender to see what you can do.

Have you thought about applying for an FHA Loan? They typically only require 3.5% down. (As long as you are living in the property)

How to leverage down payment

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