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Are you buying a home for the first time in Albuquerque and trying to figure out how to save for that crucial down payment? You're certainly in good company. Saving for a down payment is a struggle that many first time buyers have. But younger buyers have been getting creative, suing modern methods to help save money.

One creative way that young buyers have been using to save money is crowd sourcing. This method is really starting to gain traction, and it's a great way for family and friends to help you buy your first home in Albuquerque.

Here's how they do it. When the young couple gets married, instead of a wedding registry or buying traditional gifts, they invite guests to contribute to a “Down Payment Fund." The new couple may already have the things they need to start a new life. What they really need is a new home to put it all in. It's the perfect collective wedding gift!

When you do the math, it works out, since most weddings average about 120 guests. The average gift costs about $186. That would give the new couple over $22,000 for a down payment! Of course this figure could vary greatly. But as any newly wed couple knows, anything helps. And those who contribute to the fund know it's going to be used wisely.

And as you've already no doubt guesses, there's online services to do this, such as HomeFundMe. These services make it easy for friends and family to contribute. Plus the ones contributing can decide if their gift is  ‘conditional’ or ‘non-conditional’ on the beneficiary buying a home.

According to a recent Wall Street Journal article report, “about 400 borrowers have used HomeFundMe to help buy homes since the program launched in October and on average, they raise about $2,500.” The article goes on to show that these funds are used by the borrower along with their own savings to help them reach the down payment.

The other major factor helping new home buyers is programs that let first-time buyers make a down payment of as little as 3% such as with Fannie Mae and Freddie Mac loan programs. Also, FHA programs require as little as 3.5%, and VA Loans are often approved with 0% down!

Gone are the days when you had to come up with a whopping 20% down. And with this creative solution, now even more first-time buyers in Albuquerque can make owning a home a dream come true.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

HOT HOME LISTING OF THE WEEK!

7508 Calle Montana NE, Albuquerque, NM 87113  $419,000

5 Bedrooms / 3 Bathrooms (2 full, 1 half) / 3000 Square Feet

Beautiful 5 bedroom Stillbrooke in highly desirable planned community! The main level offers a grand open floorplan that seemlessly connects the living spaces. Cathedral ceilings & Clerestory windows lend to the light, bright family room w/cozy fireplace; A chef inspiring kitchen will delight featuring gorgeous granite counter tops, ample cabinet space, large pantry, eat at kitchen island & sunny breakfast nook. Master suite is situated on the main level at the back of home for optimal tranquility with backyard access, spa like en suite & huge walkin closet. Upstairs features a loft/den, three more large bedrooms, & another full bathroom. Enjoy the tranquil water feature in the professionally landscaped and fully walled backyard.

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

Tips to Save for a Down Payment on Your First Home in Albuquerque

by Sandi Pressley

Buying your first home bring up all sorts of good feelings. But before you get there, you have to get through the daunting task of making sure you have enough for a down payment. You may have to come up with as much as 10% - 20% of the purchase price, which can be a large sum.

So now its time to get creative! Here's 3 creative ways you can put together the money you need faster than you may think.

Crowdsourcing

Crowdsourcing has become a popular way for people to raise money for projects. Popular crowdsourcing sites such as Kickstarter have been used to fund all sorts of projects. So why not crowdsource your first home?

If you're getting married, for example, you can skip the traditional registry and use sites such as Feather the Nest and Hatch My House to raise your down payment. According to Hatch My House, they've helped home buyers raise more than $2 million for down payments.

Ask the Seller to Help (Really!)

Seller concessions are where the seller will work with you to reduce closing costs. If the seller wants to close the deal quickly, they may work with you in this way. The fewer the closing costs, the more money you can put toward your down payment.

You real estate agent may be able to help you negotiate a deal, such as 2% of the overall sales price in concessions to help with the closing costs.

There are, however, limits on concessions depending on the type of mortgage. For FHA mortgages, the cap is 6% of the sale price. For Fannie Mae-guaranteed loans, the caps vary between 3% and 9%, depending on the ratio between how much you put down and the amount you finance. Individual banks have varying caps on concessions.

Government Options

You can also look into programs through the U.S. Department of Housing and Urban Development, or HUD, that help with down payments and closing costs. If you meet particular income requirements, you may qualify.

Your profession may also determine what programs are available through HUD. The Good Neighbor Next Door Sales Program can help those who are law enforcement officers, firefighters, teachers, or EMTs.

If you're a veteran, the VA will guarantee part of a home loan through commercial lenders. In many cases, you don't need a down payment or private mortgage insurance, and it will help you secure a  competitive interest rate.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

HOT HOME LISTING OF THE WEEK!

9300 Thornton Avenue NE, Albuquerque, NM 87109  $375,000

4 Bedrooms / 3 Bathrooms (2 full, 1 partial) / 2717 Square Feet

 Light, bright and open floor plan on this custom-built NE Heights beauty with 4 bedrooms and over-sized 3 car garage. Full pitched tile roof. Separate laundry room with W/D that stay! Close to schools, shopping and lovely park!

Contact the Sandi Pressley team for additional details! 

Get your Morning Inspiration with the Sandi Pressley Team

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The Sandi Pressley Team
Coldwell Banker Legacy
10400 Academy Rd. NE Suite 100
Albuquerque NM 87111
505-980-2999
505-263-2173
Fax: 505-212-0729

Quick links to this site are also SandiSells.net or SandiSellsHomes.com