Here are some simple savings strategies to help you reach your goal.
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Sunward has financial tools and resources to help you reach your goal
It may be easier than you think to save for a down payment on a home – and depending on your situation, purchasing a home may be more cost-effective than renting. Here are some simple savings strategies to help you reach your goal.
YOU DON’T NEED A 20% DOWN PAYMENT
It’s a common misconception that lenders require a down payment of at least 20% of a home’s purchase price. Sunward can help qualified first-time homebuyers purchase a home with a down payment as low as 3% in most markets. For example, a 3% down payment for a first-time buyer on a $200,000 house financed through Sunward would be $6,000 plus escrow and closing costs, which are typically low. The down payment for qualified buyers who have previously purchased a home can be as low as 5% in most markets.*
Many other mortgage lenders require PMI when a down payment is less than 20% of the home’s purchase price. PMI costs are typically between 0.5% and 1.75% of the financed amount and can really add up: on a $100,000 loan, PMI could cost $1,750 a year. Sunward has PMI and no PMI options so members can get low monthly payments.
Visit gosunward.org/home-loans to learn more and to get an instant, personalized payment and closing cost estimate for each of our home loan options.
BUDGETING AND SAVINGS STRATEGIES
Even if you can only save small amounts of money at a time for your down payment, it will add up. Build a budget so you know where your money is going, and look for places to reduce expenses.
You could cancel cable TV, cut back on eating out, and/or get a new quote for your car insurance. Put the money you save into a savings account. Also consider larger changes. Could you move to a less expensive apartment or get a roommate? Would an additional part-time or second job fit your schedule?
Check out more budget-building tips at gosunward.org/budgeting.
TALK WITH A Sunward MORTGAGE LOAN OFFICER
Even if you have just started saving, all potential homebuyers are encouraged to meet with a Sunward mortgage loan officer, who can help you determine how much you should save, advise you about ways you can improve your credit, and share helpful resources like the HomeAdvantage® program.** Sunward mortgage loan officers do not work on commission, and want to help you understand the entire process from start to finish.
To talk to a mortgage loan officer or set up an appointment, call 505.237.7161 or 800.947.5328, ext. 7161 or email us at mortgages@gosunward.org.
*Qualified homebuyers could purchase a home with a 3% or 5% down payment under Sunward’s “piggyback” program: a 5/5 adjustable-rate mortgage (ARM) for 80% of the home’s value with a second 5/5 ARM for up to 17% more of the value of the home.
**Cash Rewards are awarded through the HomeAdvantage program to buyers and sellers who select and use a real estate agent in the HomeAdvantage network. Home buyers or sellers are not eligible for Cash Rewards if they use an agent outside this network. Cash Rewards amounts are dependent on the commissions paid to the HomeAdvantage network agent. Obtaining a mortgage or use of any specific lending institution is not a requirement to earn Cash Rewards. If you are obtaining a mortgage, your lender may have specific rules on how Cash Rewards can be paid out. Cash Rewards are available in most states; however, are void where prohibited by law or by the lender. Please consult with your lender for details that may affect you.
