Profile picture for la_mallett

Can I purchase a home with zero down?

  • November 07 2010 - Salem
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Answers (17)

USDA is a great rural program available for purchasing a home with no money out of pocket.  Sometimes, you can even finance in all or a portion of your closing costs into your loan.
  • January 22 2011
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Profile picture for Realtor Ray

I just closed a $0 down with OnPoint Credit Union.

The main issue with that program is that they handed our inspection report to the seller and said fix it.. Also they only allow up to 3% in closing costs. So the buyer would have to bring some money to close.

Good points, my buyer was able to keep some money in her pocket for remodeling. Hope this helps.

  • January 21 2011
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Profile picture for jal74
Another foreclosure statistic in waiting.

From the taxpayers of the US who will most likely be bailing you out in the near future....

Thanks, but no thanks

Save up for a downpayment or remain a renter.
  • November 13 2010
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Can you buy with no money down? It may be a possibility, but it not the norm by any means.
There are a few sources that may allow you to do so. Rural Development loans allow it in some cases. If you have a lot of collateral you may be able to. If the property creates instant equity you may be able to. For example if you have strong credit and a strong asset base and you are buying a home for $85,000 that appraises for $120,000.
Also keep in mind that FHA offers low down payments, as low as 3.5% and programs that include money for remodeling.
  • November 13 2010
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Profile picture for the_country_hick
Look at this thread. Buying a house with nothing down having almost no money left after you buy the house could be a serious mistake.
just bought a house, has roof and electrical issues is it covereded under FHA?

I have said many times before... WHAT IF???

What if the roof leaks, what if the furnace dies, what if 3 windows break, what if the electricity or plumbing dies?

You see buying a house is easy. Keeping the house is a lot harder. If you can not get a down payment in your back pocket how can you pay for some unexpected (and expensive) repairs that could arise? Sometimes renting is the cheapest and best solution. That way the landlord does all repairs and your monthly expenses do not change because the roof leaked, the furnace died, the septic backed up and you just had your work hours cut back.

Yes, You can get zero down through programs like V.A. (veteran only) or USDA (rural properties) but it may not be the best idea. Save up money. Develop a solid down payment and a bunch extra. At that time you can afford to buy AND keep the house.
  • November 12 2010
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Hi,

Yes, buying a home with zero down is possible, there are also options for small down payments. USDA is a government loan program that loans within a certain income bracket and in certain rural areas. USDA provides 100% financing. FHA is similar and only requires 3.5% down. Other programs like home path will finance more than 100% if you are going to use the money to make repairs to the home. Their are alot of programs, the best way to see what would work for your situation is to talk to a mortgage lender or broker, I can recommend one of mine if you'd like, they are the best. :)

Good Luck.
  • November 12 2010
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You can, but why anyone would want to do that is beyond me. You will be a minimum of 10% underwater the day after you close escrow.

But if you have a compelling reason, yeah, you can.
  • November 08 2010
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Profile picture for klarek the realist
"Key Bank is doing a great 100% program these days."

Only an agent would call 100% financing "great".  Studies have shown that the purchaser's likelihood of default is inversely proportional to what percent of a down payment they make.  But hey, to an agent that stuff doesn't matter, sales are sales.

  • November 08 2010
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You can but I never recommend.  Two things I always tell buyers; 1.  Have a significant down payment and know your closing cost estimates.  2.  If you can't see yourself living there for a minimum of 10 years, it's not the time to purchase a home.

No down payment, you're not in the position to purchase.  This is why the market is where it's at today.  The collapse of the housing market was because of zero financing and the Adjustable Rate Mortgage.  No one expected the market to drop like it did.
  • November 08 2010
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Yes you can...couple of different loans you can do depending on several factors and locations. 
  • November 08 2010
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Sure, contact a local agent and learn about USDA Rural Development loans, they are good loans and fairly easy to do.
  • November 08 2010
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Profile picture for sunnyview
I believe that you can buy with 0 down if you're a veteran, otherwise you can't and shouldn't. Emergencies happen and it helps to have a cushion of equity and cash reserves before you buy to stay out of financial trouble.
  • November 08 2010
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Profile picture for the_country_hick
If you can not save enough for a down payment what would you do if the furnace died, the roof leaked and had to be replaced, the plumbing broke, or several of the appliances and water heater all died at once?

Buying a house is easy. Keeping it is a lot harder.
  • November 07 2010
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Profile picture for wetdawgs

There are some possibilities, but lenders worry that if one has not been able to save up a down payment, then what financial flexibility do you have to handle the financial challenges of home ownership beyond the standard monthly payment.

  • November 07 2010
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There are always more options than you think!

Key Bank is doing a great 100% program these days.

Check it out!


  • November 07 2010
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you can come close to 100% financing also using the Neighborhood Stabilization Program - which gives you a 20% loan interest and payment free until you sell or refinance the home - however like the USDA it is only good in certain areas.  If you use it with an FHA loan you will need about 1.75% down - instead of the 3.5% that FHA requires - and you do need to check with what your area has for qualifying for this program both as homes and as a borrower - in Deschutes County which is across the mountain from you - a buyer must attend a class PRIOR to writing and offer - and there are income and credit guidelines - checking with a lender is your best bet.  Melina is a great agent in your area - she is a good resource to put you in touch with the right people and find you the perfect home.
  • November 07 2010
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Profile picture for Melina Tomson
The only two loan programs that offer 100% financing are the USDA rural loan, which Salem and Keizer don't qualify for (surrounding cities do though), or if you are a veteran, you can get a VA loan for 100% financing.

Otherwise the best you can do is 3.5% down with an FHA loan.
  • November 07 2010
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