Layaway House Buying

"No money down" mortgage loans have gone out of style, like granny dresses and pet rocks. Homebuilders are scrambling to come up with new ways to put their inventory into the hands of consumers, so they're borrowing an idea from department stores. If layaway plans work for lawnmowers and evening wear, why not for real estate?

The down payment layaway idea for a new home purchase is both simple and elegant: sign a purchase agreement, and start saving up cash. When the escrow account holds enough to cover closing costs and the down payment, the builder will start constructing your new house. Or, if you picked out a pre-built model from existing inventory, you can sign the closing papers and pick up the key.

The builder will help you come up with a savings plan, set up the escrow account, and give you incentives for meeting your goals. Finish on time, and you might get a price break on the property, kitchen upgrades, or a better landscaping package. They'll even send you reminders to make those payments. While it's not really a monthly bill, those payment slips can help you overcome years of imperfect savings habits.

These builders aren't coming up with these programs out of some philanthropic desire to help you out. The homebuilding industry is pulling out all the stops to get buyers back into their open-house models, and then hopefully into a new home. With the mortgage side of the equation tightening up recently, it takes some creative thinking to come up with new incentives that actually work.

At least three of the largest homebuilders in the nation are setting up layaway programs right now, and you can expect more to come if they work. For some, it's a great way to start a savings habit.

Center State Mortgage is your #1 source for layaway house buying in New Jersey and Staten Island! They have the background and experience to make sure that you get your perfect home loan! Choose Center State Mortgage for all your home loan need!