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Replies (20)
- Roadrunner4
- Contributions:8
You are not ready to buy yet. Do you not understand what is going on out there? If you can't put down at least 5% with full closing costs and still have a "cushion", youo are not ready to buy. Keep saving.
- digiphaze
- Contributions:254
Your situation is a great example of why prices must come down. If the median income of town X is 38k and the median home price is 400k. Then you can be sure that most people will not be able to put the traditional 20% down. With lenders tightening their standards to again require these types of down payments, they will be restricting a large portion of the population.
So cooling your heals and saving up for a bigger downpayment in a year or so will put you in a much nicer house with a much lower monthly payment.
- Nathaniel Kelly, "nkelly32"
- Contributions:162
have you made an offer?
- ELender
- Contributions:1479
To answer your question, there are 100% loans out there and other means of down payment assistance but you have not given enough information to clue you in on them yet. There are variables such as where the property is located, what is an estimated price you would like to spend, yearly household income, how many in the house, and lastly the all important one...what are you comfortable with for a new payment?
- luckyme8890
- Contributions:487
Rafa, you and your wife are SOOO not ready to buy a house! You have nothing. You are looking for a handout for downpayment. A seller may pay for the closing cost. With what you consider a mortgage payment, it really is rent money. Buying with other people's money era is long gone.
- Byron Del Cid, "Money to Lend"
- Contributions:319
Rafa-
Like Elender said, there are programs out there like my community 100 or House of America.. they all allow up to 6% in Seller assistance.. all you need is a 640 or above and has to be full documentation. Just be careful is different for every county and also some lenders have different restrictions.
- Mike Clancy, "mfc789"
- Contributions:8
Depending on the area you are buying in, you may be able to get a USDA loan. 100% financing, no mortgage insurance, and no limit to seller assist.
Not available every where, but easy enough to check. ( Large metro areas usually don't qualify) There are income limits however. Not just for first time home buyers. Mike
- tigersgorawr3
- Contributions:4
You can always negotiate seller to pay your closing costs...
http://www.nchfa.com/Homebuyers/HBwhatweoffer.aspx This website gives info for first time buyers. You might be eligible for a no interest loan. You pay 750 and they pay 7,000 for a down payment and you don't have to pay it for 30 years or if you sell your home.
- Davis Team Lender
- Contributions:12
You might want to consider an FHA loan with a down payment assistance program. In some cases you can buy a home, finance 97% and get in the door with no money coming out of your pocket or savings and you get a reduced level of mortgage insurance. We have more info on all types of mortgage programs on our Blog at 1st Partners In Real Estate.
- Sameer Khan, "SameerKhann"
- Contributions:14
Rafa!! I guess it's not a good time for you guys to buy a house as u aint ready. You should wait for a year or so
- CORONA NICK
- Contributions:2218
Save for the down payment.... lending is tight... prices will decline futher beyond 2008, you have time to save... if your serious, do it.
- Mrs777
- Contributions:3
Rafa, Did you know that Countrywide offers an FHA program called Niamia. This type of program negotiates with the seller, where the seller provides the buyer with 6%. Three percent goes for the down payment and 3% is apply to the closing costs. This program is only offer on certain counties you might want to double check. Good luck.
- June Reyno, "cssfdirect"
- Contributions:2
With the mortgage crisis, lenders are really pushing for at least 5% down nowadays. What is your mid range Credit Score and do you have assets (i.e. retirement income, insurance annuity, future gifts etc.) What can you afford in monthly payments? What area of town are you looking to buy a home? Do you have an approval letter from your lender or a "pre"-approval letter from your lender? I think I may be able to help if we can discuss your current financial situation. It is possible for you to acquire property with NO MONEY DOWN & 100% FINANCING subject to lender criteria. Please call me @ 858-361-2399 to see if we can find the perfect house for you!
- June Reyno, "cssfdirect"
- Contributions:2
With the mortgage crisis, lenders are really pushing for at least 5% down nowadays. What is your mid range Credit Score and do you have assets (i.e. retirement income, insurance annuity, future gifts etc.) What can you afford in monthly payments? What area of town are you looking to buy a home? Do you have an approval letter from your lender or a "pre"-approval letter from your lender? I think I may be able to help if we can discuss your current financial situation. It is possible for you to acquire property with NO MONEY DOWN & 100% FINANCING subject to lender criteria. Please call me @ 858-361-2399 to see if we can find the perfect house for you!
- Vincent Towne, "Countrywide2008"
- Contributions:251
You can purchase thru FHA up to 97% with 3% down. Also there's a non profit organization called Nehemiah that can assist you with down payment.
- HomeRefinanceExpert
- Contributions:1
Wrong Information provided:
(1.) FHA Lower their 3% down to 2.85% (2.) Down payment assistance is OLD News (3.) The Lenders now require 2-3months Reserves (4)The Lender does not issue "Pre-Approval Letter." (5)Freddie Mac & Fannie instruct the Lenders which loans can or cannot be "delivered" to them. (6)CLEAN your credit report before, you approach a Loan Officer
- Andrew Adams, "203K Specialist"
- Contributions:9349
HomeRefinanceExpert.....Stick to Refinances
1. Calculating the max loan amount for FHA is a little more complicated than a down payment %. Most of use use 3% for simplicity.
2. Down Payment assistance is old news....I don't agree their are a number of city and towns that offer real assistance and continue to assist 1st time buyers.
3. Reserve Requirements are based on loan programs, not every program requires reserves.
4. In your world since the lender doesn't issue a pre-approval I suppose they don't issue a commitment letter and they don't actually fund the loan either....
5. Lenders can deliver loans to Fannie and Freddie that meet their guidelines if a loan doesn't meet their guidelines banks either have to portfolio the loans (that they didn't fund, becuase they don't issue commitments) or find a non conforming investor....for example a what happens with JUMBO loans.
6. Getting good advice from your loan officer about what you need to clean up your credit can save you money and get you a better results!
7. Do your home work, get educated and work with people that you trust.
- DannyInSoCal
- Contributions:445
Rafa - You're not ready to buy.
Don't make a mistake............
Thanx, D
- CORONA NICK
- Contributions:2218
No money down, means no skin in the game.... you wont get a loan without getting robbed....
- rayebee
- Contributions:13
We just got a mortgage in which the closing costs were wrapped into the mortgage; i.e., we didn't have to put any money down.
However -- and this is a big however -- we have collateral, excellent credit, and a mortgage history, and I'm sure that influenced the bank's decision. Plus, we were only asking for 70% of the appraised value of the home (the purchase price was well-below that.)
But I tend to agree with everyone else. What's the rush?
Housing prices in the current market are falling and are likely to continue doing so for at least the next two years (shaking head sadly, since I bought at the peak). Plus interest rates on 100% loans tend to be higher, have PMIs attached, lots of points and/or adjustable rates.
I think your best course of action is to keep saving. Even if you could find a 100% mortgage now, you might kick yourself when:
(a) three months from your closing date you see housing prices have dropped even lower;
(b) interest rates have possibly dropped (impossible as that may sound) again; and
(c) you find the house needs some repairs, but you can't do them because your bank account is empty.
Hang in there, keep working, and before you know it, you'll be able to buy that house!
Buying home for first time. Issues with down pymnt/closing costs.
Our credit is good. not excellent but good. We have been pre-approved already but their deal is that we put 3% down of the selling price. Please anybody help. Any knowledge will be greatly appreciated. Thank you
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