Profile picture for uppercaseliving

Is it possible to buy a house with NO MONEY DOWN and NO MONEY DUE AT CLOSING? Loans??

Could we wrap all cost of home and closing costs and taxes into our home loan?  Is that possible?

We will be buying a small home that is just to get us through the next 4.5 years until we move out of the area.
  • January 16 2009 - Schnitzelburg
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Answers (10)

The No-Money-Down Loan option is available to Kentucky home buyers and through the Kentucky Housing Corporation,  VA Kentucky Home Mortgage Program , and Kentucky United States Department of Agriculture (USDA), these safe and secure loans allow:
  • 100% of the purchase price, $0 down.
  • Qualifying with no cash reserves or seasoning requirements!
  • seller concessions for closing costs 
  • Fixed Interest Rates.
  • Both new and existing homes.
  • October 14 2013
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If this is your situation, even in 2012, check first with your bank and also Mortgage companies for possible state and local programs that could help you.

  • January 04 2012
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I just spent a few minutes answering this, then realized it is an OLD question from Jan, 2009, so I deleted what I had typed!

Geesh, I hate when old questions are resurrected!
  • October 18 2010
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What will you do if, after 2 years, there are necessary improvements that need to be made to the home?

Buying a house with no money out of pocket is one thing.  Buying a home with no money in reserves is another thing.

Please don't buy a home unless you have AT LEAST 6 months cash reserves.
  • October 18 2010
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You should talk to a lender and find out what options they have available to you. 
  • October 17 2010
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I have several Clients who did a USDA loan with no money down and asked the sellers to pay the closing costs.  But the trick to that is having a Realtor who knows how to look at the areas and available homes to determine if it will work.  I have three right now.....Call a Realtor in your area, they will surely be able to help....
  • October 17 2010
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Profile picture for jadedea
have you tried looking into your state's grants and loans? im in maryland and, depending on the lenders, you can do things like take classes and they will grant you money to help pay the costs for closing or down payments. i would ask your agent to see if they can research and find you anything. i also know that in d.c. they have a program that allows people to save money towards a house to pay for down payments or closing costs. there may be something like that in your area. also have you also looked into lease to own? you basically pay *rent* but that money is used towards the down payment or cost. you get to rent where you will eventually live and build up some escrow towards the house. i may be off with those different options but definitely talk to your agent. hopefully the agents here can explain this a lot better than i did!
  • October 17 2010
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Even in today's market, there are programs that let you get into a home with little or no money out of your pocket.  KHC (Kentucky Housing Corporation) grants fund your downpayment.  There is also a bank that funds homes in Jefferson County with as little as $500 from the buyer.  These are in addition the VA and Rural Housing that can provide 100% financing for those who qualify.  Consult a local Realtor, they should be able to refer you to a qualified loan officer who can give you more details.

~Best Wishes,

Mark Atteberry
  • October 17 2010
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Profile picture for Sheila Barrett

You can't wrap those cost in a loan but you can always negotiate with the seller. Many times sellers are willing to pay for buyer's closing cost and sometimes for the taxes for the year you buy it. You just have to be creative.

  • January 27 2009
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You can not wrap the downpayment and closing costs into a mortgage when you are purchasing a home.

There are 2 loan programs available where you can buy a home with no money down - VA (Veteran's Administration) and USDS Rural Development Loans. For VA loans, you must be active duty or reserve military, retired or an honorable discharged veteran or veteran discharged under honorable conditions. Both programs allow the sellers to contribute up to 6% of the purchase price to be sued towards closing costs. 

If you don't qualify for either of these programs, then consider an FHA loan. You will have to put 3.5% down - but that 3.5% can come from gift of funds from blood relatives, your employer, a church or other non-profit organization, or from a government entity. FHA also allows the sellers to contribute up to 6% of the purchase towards yoour closing costs.

For homeowner assistance programs that may be available in Kentucky, visit HUD's website at http://www.hud.gov/local/ky/homeownership/buyingprgms.cfm. You can also visit the Kentucky Housing Corporation at http://www.kyhousing.org/page.asp?sec=54&id=70 for down payment and closing cost assistance information.
  • January 16 2009
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