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I was told that it is almost impossible now to buy a home with nothing down or as little as 3%?

We are not first time home buyers. We sold our home 4 years ago and have been renting since.
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July 18 2011 - Plainville
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This depends on your credit score. FHA loans require I beleive a minimum of a 640 credit score. If you are approved for an FHA mortgage, than you need to put down 3.5% of the purchase price to buy the house. Be advised, FHA has a maximum loan amount. Right now I beleive it is $292k and this is supposed to be reduced Oct. 1st 2011

The other option is applying for a USDA mortgage. This is a zero down mortgage.

Don't beleive the hype! I have clients approved and buying right now.
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July 26 2011
One great program that just isn't being promoted very well is the CHFA Hero mortgage which is for purchasing foreclosed, short sales and homes that need renovation. At this point only 2 mortgages have been processed in the state!  There is no income limit like with a normal CHFA loan and if you currently own a home and want to buy a different home you can qualify to buy the new home if you are able to prove that you have a rental lease agreement for your current home. The program allows for up to $35,000 in renovation costs. It also requires having 3.5% downpayment. The Hero Program is being offered to help get the inventory of foreclosed and short sales off the market. Its another option to consider.
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July 26 2011
Thats not true. VA buyers do not have to put anything down. Or USDA. FHA is 3.5% and Conventional is 5%, but their are other options to help you. If your credit score is good, check with your differnt cities. Some run special programs for buyers at certain income levels. Also new construction, when using their lenders, usually can come up with incentives.  FHA Homepath loans that are on some FHA foreclosures also are good deals and cover the majority of your closing cost. Just remember closing costs are another out of pocket expense, usually running about 4% of the purchase price. In todays market, you can usually get the seller to cover the majority of that amount.
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July 26 2011
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It's not impossible to buy with zero down if you qualify for VA or USDA. Otherwise, FHA will require 3.5% down and decent credit. The worse your credit is, the higher your required down payment for them will be.

Lenders here on Zillow can give you general advice on how to improve your ability to qualify and what programs might be available if you post a little more information as far as your income, monthly debt and credit score.
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July 26 2011
You can actually have 100% financing with your closing costs included through CHFA.  If you would like a referral for a good loan officer, I can give you a couple names to explore for sure, and I would be happy to assist you in your home search if you are not currently working with an agent.  Take care.  Patrick
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July 26 2011
We're seeing some lenders start to do convenetional loans with 100% financing.  For example, NASA Federal Credit Union has been doing 100% loans for several months.  They're conventional (not government) loans and they fund them through their portfolio.  They're based here in Washington, but operate in states throughout the U.S.  Criteria are strict, but they are actually closing 100% loans.  And you don't have to be a rocket scientist (e.g. NASA employee) to join.  Feel free to email me for contact info.
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July 19 2011
I have worked with numerous USDA loans, they are teriffic for no money down if you qualify as thier are restrictions on specific areas.
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July 19 2011

Great ideas everyone.  I would like to suggest one more. Try contacting your local Community Development Office to see what assistance they provide.  People often think these programs are for very low income families however you will be suprised at what qualifies as low income.  If they do have programs available, don't wait, the funding usually doesn't last long once word gets out.

If you live in Florida, find a mortgage broker that is familiar with the Florida Bond Program.  You'll have to qualify, but if you do, you can receive up to $7500.00 in assistance.

Good Luck

Melvin

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July 18 2011
Its defiantly not easy to get that right now.  As most people have said FHA is at 3.5% which is close but not what you seem to be looking for.  It is still possible you just need to be creative and know every type of loan that is offered. 
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July 18 2011
There are loans out there that do not need to follow FHA guidelines that offer 80/20 loan.  80% is loaned by a local bank and the other 20% is loaned through CT State programs such as CHFA.  The great thing about these loans is there is no Mortgage Insurance (PMI) which is mandatory on FHA loans no matter how much you put down.  I would suggest you find a mortgage lender who offers these options.  I do know some in the Danbury area that might be able to help you.  Just let me know.
Hope this helps.
Ray
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July 18 2011
I beleive if you haven't owned a home in the last 3 years you will qualify for the first time buyer programs.
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July 18 2011
The homepath program can be as low as 3% down see web site:
http://www.homepath.com/financing/index.html

And remember these agent work extremely hard answering the questions on the site if the answer is helpful give them a thumbs up!
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July 18 2011
FHA loans are avstill ailable with 3.5% down.  No money down is possible with USDA rural loans, (there are income and location restrictions) and VA loans.  Also, ask your lender about a VHDA or FHA plus loan.  Good luck!
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July 18 2011
Sunny and Wetdawgs are correct.  USDA you can finance up to 102% of the appraised value of the home.  Often this can include closing costs.  Some properties you can finance repairs and appliances.  Go to the USDA website for a map of qualifying properties.

FHA is 3.5% down.  HUD has some homepath loans which allow a portion of the closing costs to be financed, but you still need the 3.5% down and the balance of the closing costs.
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July 18 2011
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I believe that the USDA qualifying homes and VA loans can still be zero down. Some of the HUD homes also have low down payments. The minimum FHA down is about 3.5% and then I think I read that the required down can go up from there depending on your credit score.

The best thing to do is talk to several local lenders and see if there are programs specific to your area or situation that might help you and to start saving for a down payment to give yourself more flexibility in the loan you choose.
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July 18 2011
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FHA loans are available with 3.5% down.    For certain people, zero down is possible with USDA rural loans (not all properties or income levels qualify) and VA loans.

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July 18 2011
 
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I was told that it is almost impossible now to buy a home with nothing down or as little as 3%?
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