Profile picture for kumarkiran

First time home buyer zero down payment loan range

I am a first time home buyer zero down payment with excellent credit score and good income (60K). I would like to know how much loan amount I can expect from the lenders.
  • March 27 2011 - Lathrop
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Answers (9)

You may qualify for some assistance grants through your local area. I work in southern California (Selling Rossmoor homes specifically.), and we have several programs that can help borrowers in the form of equity partnerships. This allows people to possibly buy homes (Usually short sales or REOs) with nothing down and outside the scope of their normal price range. Check with your local lender. They're usually the ones in the know. 
  • March 28 2011
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Profile picture for SteadyState
While I applaud you for your good credit a good measure of credit worth is the ratio of debt/liquid-assets. It is sad but true that almost no one can foresee that their own job loss. The lack of a down payment magnifies the lack of credit worth.
  • March 28 2011
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Hi Kumarkiran, I am a lender and have done many FHA transactions throughout my career.  To find out how much you qualify, lenders must obtain a credit report along with your current income documents.  It sounds as if you are a wage earner and not self employed, thus they will look at your gross income from your 2010 W2 and verify your recent pay stubs to confirm your income is meeting or exceeding your prior year earnings.

FHA is fairly lenient with their debt ratios, often allowing up to 50-55% of your gross income, minus your debts on your credit report.  Several things can effect the actual amount you can borrower, for example if you choose a condo over a single family home.  Condo will have a home owners association fee which will increase your debt ratio and could effect how much you can borrower. 

Furthermore, there are still grant programs out there for qualified borrowers.  Based on what you advised regarding your income and your other montly obligations, I would say you could purchase anywhere from $300,000 up to $340,000 but keep in mind that is very vague as the final amount will be determined based on the entire loan package.  I'd be happy an answer any additional questions for you.  Good luck on your home purchase!

Regards,

The Baker Team
  • March 28 2011
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Profile picture for wetdawgs
An FHA loan requires 3.5% down (10,500 on a $300k purchase price).  You will also have closing costs of several percent.   It is prudent to have saved up money to cover the maintenance challenges of the first year (often several percent of the cost of the house)
  • March 27 2011
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Profile picture for kumarkiran
Thanks for your reply guys.
I have an auto loan which is around 5K and it $150 every month that's it.
I also would like to know how much minimum i can put down. For example I can manage around 10K, or 15K max some how. And looking between 150K to 300K. Is this practically possible.
  • March 27 2011
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Debt affects how much of a loan you qualify for... Just a guess. If there is any lender that does not factor debt I will pay dearly for the name and number of that lender. Licensed lenders are what I'm asking for.
  • March 27 2011
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Profile picture for Curt Hess
Kumar - the ONLY good answer to this question "Ask a lender." 

Everyone else is guessing.

I would amplify that by recommending you talk to TWO (2) lenders. There is no cost to you (other than time), and you'll get a very experienced answer. 

Unfortunately, unless you are a veteran, it is next to impossible to get a zero down payment loan. 

Check with your lender about the possibility of a community development program which provides down payment money. Maryland has such a program. Maybe your state/county/community has one.

Good luck.
  • March 27 2011
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Another big factor in what will determine the loan range is your current Debt. A good income can be cancelled out by a lot of debt.
  • March 27 2011
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Profile picture for Brad Young1
With no down you can go with a USDA loan in Lathrop. Or if you are a veteran you can go with a VA loan with no down. Send me an email at [contact info removed by moderator] and I will set you up with our lender, Scebic Oaks Funding. You can have a definite answer by Monday afternoon. - Brad
  • March 27 2011
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