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Is it possible to take out a second morgatage to pay down payment for fha loans?

My husband and I  are looking to purchase our first home and it looks like an fha is the best option for us. However we don't have enough money for the down payment, is it possible to take out a second loan for a down payment?
  • January 15 2009 - Happy Valley
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Answers (9)

If you haven't already done the loan by all means as long as it doesn't throw off your DTI (debt to income) ratio then acquiring those funds through gifts from family or loans is at your own discretion. Really you need to weigh the cost benefit to you and your husband
Another question is if you have to borrow now just to complete the loan are you buying to much home? Is this the right loan for you and your family? Is going even further into debt to purchase your home a solid financial decision because there are many unforseen instances as a homeowner where having that credit avaiable may be a difference maker.
  • December 10 2009
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Hi - Clackamas County has a couple of options to help with your down payment and/or closing costs...one program has a specific area that it targets and the other is County-wide - both have some income limitations.  There are also many parts of Clackamas County that qualify for the USDA Rural 102% loan - this doesn't require a down payment at all.  Happy Valley is not in the area that qualifies though if that's where you are looking though.  USDA has a website with info about the program and a tool where you can put in a property address to see if what you're looking at qualifies or check out the map of areas that work...........Click here to go take a look at the USDA Website

Also - I am dual licensed as a Realtor here in the Portland area and I am seeing many bank repo properties coming up for sale that are offering 100% financing if you use the bank that's selling the property for your loan - many are offer some free appraisals as well.  They need these homes sold and are being creative in marketing them to get them sold.

Hope that helps.

Kelly

  • January 16 2009
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Thanks Jamie and Carl for the clarification.
I never liked the Seller funded DPA's. Seemed like a scam......

Still a believer in the borrower accumilating the down payment funds on their own. It establishes a good financial management record and I personally believe it helps prepare for some of home ownership's unexpected expenses and maintenance issues which arise from time to time.

 I realize there are various circumstances and situations! And the best news - I do not write the guidelines:-)
  • January 15 2009
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Barry, A real DPA is still allowed.  It is the "the use of a Seller as a DPA's" that was discontinued. 

(Non profits used to funnel a sellers gift right back to the buyer for a fee)
This is Not allowed. 

Lists of real DPA's are rather large and seem to be increasing with the current market. They do have income, location restrictions, for first time home buyers and owner occupied only.

Bond programs for DPA's issued by your city is a good source.
  • January 15 2009
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Barry,  Seller funded DPA's were eliminated but other State, City and County programs may still be used. 
  • January 15 2009
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Jamie-

I thought I read where DPA programs were no longer permitted for HUD or Conforming loans. Only borrower's employer, labor union, or governmental agency etc.......for low to moderate incomes.

  • January 15 2009
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The down payment can be be borrowed against the property you are intending to purchase.  You may borrow against an auto, boat etc, a secured loan may be used for down. No credit card advances.
  • January 15 2009
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Talk to a lender, they will advise if you qualify for the home you are looking at.  Income is the most important.  There are many Down payment assistant programs that will fund your down payment.

DPA's have income restrictions, for owner occupied properties, and location restrictions.  The city will lend money if you buy in their city etc.
Silent seconds for the down payment is available to first time home  buyers.  FDA programs require Zero down payment but have location and income restrictions. 

You can not use borrowed money for a down payment. 

But if you are creative and do have a good income you can slowly create the funds for down payment by creating debt with your credit cards. 
 
After the Purchase you need to focus on paying these off as soon as possible. 

Ask a relative for the down payment is another common way.

Good luck.  Desire will give you the outcome.
  • January 15 2009
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You need the downpayment funds or "gift" from realitive for the dp funds.

A HUD approved lender will chime in before long here......
  • January 15 2009
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