Profile picture for dencondo

Is there a way to get a zero-down loan ?

Is there a way to get a zero-down load for a house for a $250k - $300k house. The condo I own has lost a lot of value ($30k) - I want to rent it out and buy but cant pay a down payment. I have a well paying job and($100k+)  great credit score (760).
  • April 22 2010 - Englewood
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Answers (5)

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Profile picture for matt85203823
I was surprised to find a no money down loan through Key Bank.  You will still need to have good credit and a steady job to qualify. There are also programs that assist with down payment so that you can get an FHA loan but sometimes they are burdensome.  I recently wrote a blog about the no money down loan at Key Bank.
  • April 22 2010
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Of course, you are asking about the actual down payment required, but it sounds like the real issue for you is the amount of cash at closing that will be required----which includes closing costs on top of your down payment.

There are a couple ways to stay on top of closing costs, but one many aren't aware of is a commission rebate.   The Department of Justice has a website about them where they declare that rebates "make buying a home less expensive":

http://www.justice.gov/atr/public/real_estate/rebates.htm
  • April 26 2010
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One thing you also might not be aware of is conversion of your current residence to a rental means that you will need either 30 percent equity in the property (which you said you didn't have) and /or six months PITI on that residence and the one you are buying, so even a zero down program won't work in these circumstances.
I do, highly promote the $100 down on HUD foreclosures where it is offered.
  • April 23 2010
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Depending on where you live, USDA offer a 100% loan with no mortgage insurance, but it is for rural areas.  Check out for areas and eligibility

HUD still offer $100 down.  I have a great Lender you can talk to on these.

You will still need a credit score in the 600's and a steady job.
  • April 23 2010
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Profile picture for Charles Moore
The only options I am aware of is VA or the Community Reinvestment Act which some local banks offer. With the CRA loan you typically cannot own another property at the time of closing so renting out your existing condo would not work. An FHA loan is your best bet since it is only a 3.5% down payment which could work for you.
  • April 22 2010
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