The down payment can come from a variety of sources. Prospective homeowners may also receive part or all of the money from a parent or other person. They may even consider co-borrowing or equity sharing with another party in order to minimize their required cash outlay. When a buyer does not have an adequate down payment, secondary financing may be used to bridge the gap between the primary loan and the smaller down payment. Referred to as a carryback or purchase money loan, secondary finance is, most often, an extension of credit, given to the buyer by the seller.
Eligible veterans can secure a loan for little or no money down.
Your monthly payment will be one of the most important factors in your decision to buy a home. Whether or not you can afford it will depend, of course, on your income. Calculating the loan amount is a matter of simple mathematics. Typically, the higher the payment, the greater the income you will need to qualify for the loan. In many instances your monthly payment may include more than principle and interest.