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Answers (12)
- Craig1976
- Contributions:69
I sincerely wish you the best of luck with your wedding, and if I may be so bold, suggest that you try saving a down payment before even thinking of buying a home. Move in together and pay one rent instead of two for a couple of years.
Saving some money will go a long way to prove that you can be a responsible homeowner because, forgive me, you haven't been able to do that so far. Believe me, 5% down is a very low requirement and a gift from God. No bank in their right mind would lend on 5% down without the government backing them, and the government isn't going to back them forever. Make that your target. Good luck!
Saving some money will go a long way to prove that you can be a responsible homeowner because, forgive me, you haven't been able to do that so far. Believe me, 5% down is a very low requirement and a gift from God. No bank in their right mind would lend on 5% down without the government backing them, and the government isn't going to back them forever. Make that your target. Good luck!
Yes, you are ENTITLED to buy a home. Why should you have to be mature and gown up, and save a downpayment? that is so unfair!
- Miekeba Jones, "miekeba_md_dc_homes"
- Contributions:13
There are lenders that have a CDA program, which you borrow the down payment at a low interest rate.
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
Hi Vennia, Many here have spoken aboiut the USDA program and that is a great program but it is limited to what the USDA defines as rural geographic areas. In Maryland the USDA is available in all counties, the aresa avilable are as follows...
PG County, outside of Crain Hwy, south of RT 4.
Calvert County: all
Charles County: all, except the city of Waldorf and areas in close proximity
Anne Arundel: West of Rt 2 and south of rt 214
Montgomery: very little except in outlying areas
Howard: Very little.
Maryland has a program for first time home buyers where you can get $5,000 to be used towards your down payment or closing costs. It is in the form of a zero interest zero payment loan as long as you own the property or refinance into another loan. The interest rates on the program are different for foreclosed properties versus regular sales. At this writing the rates are 3.0% , apr 3.695% for foreclousures and 3.50% apr 4.236% for regular sales. These are 30 year fixed rates loans and can be USDA, FHA or VA. FHA & USDA allows seller concessions to help pay your closing costs of up to 6% of the sales price and the VA 4%,
Settlement costs can vary on our area buy quite a bit, this is due to property taxes in the different counties as well as cities like Bowie. Bowie residents get absolutly great services but their property taxes are higher than most. Consequently the settlement costs on a home in Bowie is higher than othe r parts of the county in general. Realisticly you can expect settlement costs, excluding any required down payment to be in the 4-5-1/2 % range in relation to the sales price. FHA loaans require a 3-1/2% down payment, on a home selling at $175,000 thats $6,125 with the state money of $5,000 you would then only need $1,125 to get into the home, provided th eseller was paying the balance of your settlement costs.
Regardless of what the loan program may allow, this is a negociable item that needs to be written into the overall contract offer, you need to work with a good real estate agent who will be your buyers agent.
let me know if you want to know more.
PG County, outside of Crain Hwy, south of RT 4.
Calvert County: all
Charles County: all, except the city of Waldorf and areas in close proximity
Anne Arundel: West of Rt 2 and south of rt 214
Montgomery: very little except in outlying areas
Howard: Very little.
Maryland has a program for first time home buyers where you can get $5,000 to be used towards your down payment or closing costs. It is in the form of a zero interest zero payment loan as long as you own the property or refinance into another loan. The interest rates on the program are different for foreclosed properties versus regular sales. At this writing the rates are 3.0% , apr 3.695% for foreclousures and 3.50% apr 4.236% for regular sales. These are 30 year fixed rates loans and can be USDA, FHA or VA. FHA & USDA allows seller concessions to help pay your closing costs of up to 6% of the sales price and the VA 4%,
Settlement costs can vary on our area buy quite a bit, this is due to property taxes in the different counties as well as cities like Bowie. Bowie residents get absolutly great services but their property taxes are higher than most. Consequently the settlement costs on a home in Bowie is higher than othe r parts of the county in general. Realisticly you can expect settlement costs, excluding any required down payment to be in the 4-5-1/2 % range in relation to the sales price. FHA loaans require a 3-1/2% down payment, on a home selling at $175,000 thats $6,125 with the state money of $5,000 you would then only need $1,125 to get into the home, provided th eseller was paying the balance of your settlement costs.
Regardless of what the loan program may allow, this is a negociable item that needs to be written into the overall contract offer, you need to work with a good real estate agent who will be your buyers agent.
let me know if you want to know more.
- Craig Griffin, "CraigGriffin"
- Contributions:3
I congratulate you on your impending marriage and on your decision to buy a home while home prices and loan rates are low.
I work with people in your exact situation all the time and my first suggestion is not the USDA loan because of what has been mentioned - you must buy in a "rural" area.
My suggestion is for you to find what down-payment assistance programs are available in the areas you're looking in. The market I serve in San Diego and Riverside, CA, Counties have numerous programs, some with substantial dollar amounts for first-time buyers. They range from 3% down to $77,300! These are "silent seconds" - loans that have no payments and are due when you no longer occupy the home. Each has a different amount of minimum $ from you toward the loan and loan costs, but some go as low as $0, $500, or 1%.
Don't let people tell you these don't work - we use them all the time. Of course there are restrictions, but many more people qualify than think they can! I suggest you do a search for "down payment assistance" and your area of interest and find a lender who is qualified and experiences in offering these. Many lenders can't or don't offer them since they involve more paperwork. If you're looking in California or Utah, I can either help you or put you in touch with someone who can.
I work with people in your exact situation all the time and my first suggestion is not the USDA loan because of what has been mentioned - you must buy in a "rural" area.
My suggestion is for you to find what down-payment assistance programs are available in the areas you're looking in. The market I serve in San Diego and Riverside, CA, Counties have numerous programs, some with substantial dollar amounts for first-time buyers. They range from 3% down to $77,300! These are "silent seconds" - loans that have no payments and are due when you no longer occupy the home. Each has a different amount of minimum $ from you toward the loan and loan costs, but some go as low as $0, $500, or 1%.
Don't let people tell you these don't work - we use them all the time. Of course there are restrictions, but many more people qualify than think they can! I suggest you do a search for "down payment assistance" and your area of interest and find a lender who is qualified and experiences in offering these. Many lenders can't or don't offer them since they involve more paperwork. If you're looking in California or Utah, I can either help you or put you in touch with someone who can.
- sunnyview
- Contributions:25139
There is information on USDA home loan programs here and you can look up whether a property you are considering is eligible for a USDA loan by address/area here.
The possible problem I see is that being eligible for a USDA area loan only limits your choices of home and many "rural" or outlying areas have values that are falling faster than the markets closer in. I would be careful in making the choice of an accelerated timeline to buy at the expense of buying in an area that will have more stable values over time.
The possible problem I see is that being eligible for a USDA area loan only limits your choices of home and many "rural" or outlying areas have values that are falling faster than the markets closer in. I would be careful in making the choice of an accelerated timeline to buy at the expense of buying in an area that will have more stable values over time.
- Elena Petrov, "kapyarets"
- Contributions:174
There is some USDA Rural Housing program still has $15 Billion remaining in available funding? This program allows for NO down payment and currently requires NO monthly PMI. However, any buyer who has a mortgage application dated after September 30, 2011 WILL be subject to monthly PMI with this program.
This program is limited to towns throughout the state that are considered rural. But some towns that qualify might surprise you such as Hopkinton and Holliston in Middlesex County.
If you'd like more information or a list of towns that qualify, please let me know
This program is limited to towns throughout the state that are considered rural. But some towns that qualify might surprise you such as Hopkinton and Holliston in Middlesex County.
If you'd like more information or a list of towns that qualify, please let me know
- sunnyview
- Contributions:25139
If you don't have any down payment, then you also don't have any financial safety net for repairs or unexpected events that a new owner might face. I would wait to buy until you have some money in reserve.
Since you are getting married soon, you might also consider asking your wedding guests to contribute money directly for your down payment instead of buying gifts. A house lasts a lot longer and a toaster and even $50 from 50% of your guests adds up quickly to a small nest egg you can build on.
Since you are getting married soon, you might also consider asking your wedding guests to contribute money directly for your down payment instead of buying gifts. A house lasts a lot longer and a toaster and even $50 from 50% of your guests adds up quickly to a small nest egg you can build on.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
If you both have jobs and decent credit, you might find owners who will take back financing with a higher interest rate if you buy they house
David Cooper
David Cooper
- James Ryan, "GreatRateFolks"
- Contributions:1038
Hi Vennia:
You have received some good advice and ideas to consider (i.e. creating that 3 to 5 year plan). However, rates are super low, prices for homes are way down, and I can understand your desire to get into your own home, especially since many times your mortgage payment will be significantly lower than the rents currently being charged.
Besides USDA and Veterans Admin Loans, both of which feature no downpayment loans, there are also first time homebuyer grants to consider.
One, featured by American Bank and furnished through the auspices of the Federal Home Loan Bank in Atlanta, will match any monies you have 4:1 to a maximum grant amount of $7500. So, if you can get together $1875, we can match that with an additional $7500, sometimes working out to MORE than 100% financing! You can not get any money back at closing, but we lower your loan amount. This is a great program, and the grant is forgiven if you stay in your home 5 years!
Best wishes, I hope you accomplish your goals after thoughtful consideration!
Jim, American Bank.
You have received some good advice and ideas to consider (i.e. creating that 3 to 5 year plan). However, rates are super low, prices for homes are way down, and I can understand your desire to get into your own home, especially since many times your mortgage payment will be significantly lower than the rents currently being charged.
Besides USDA and Veterans Admin Loans, both of which feature no downpayment loans, there are also first time homebuyer grants to consider.
One, featured by American Bank and furnished through the auspices of the Federal Home Loan Bank in Atlanta, will match any monies you have 4:1 to a maximum grant amount of $7500. So, if you can get together $1875, we can match that with an additional $7500, sometimes working out to MORE than 100% financing! You can not get any money back at closing, but we lower your loan amount. This is a great program, and the grant is forgiven if you stay in your home 5 years!
Best wishes, I hope you accomplish your goals after thoughtful consideration!
Jim, American Bank.
- Matt Hiatt, "Matt Hiatt"
- Contributions:112
I had a buyer get into a brand new home for $200 out-of-pocket using a USDA loan, which is available in rural areas (this area was Buckeye, just outside of Phoenix). and his payment was less than rent. That is one option to look into .
- wetdawgs
- Contributions:26833
No money down? A USDA loan for selected rural properties or a VA loan for vets are available. There are certain local programs with down payment assists, but those have income and other eligibility requirements.
Humbly, it sounds like you are jumping ahead too fast in your desires to purchase a house. You've taken the right first step of paying off debt and cleaning up your credit. Your next step is to save up a down payment AND a slush fund for the realities of home ownership (plan on 3 to 5% of the costs of the house in the slush fun).
There is nothing wrong with having a 3 to 5 year plan to move towards home ownership. It will increase the probability that you own the home for a long happy time.
Humbly, it sounds like you are jumping ahead too fast in your desires to purchase a house. You've taken the right first step of paying off debt and cleaning up your credit. Your next step is to save up a down payment AND a slush fund for the realities of home ownership (plan on 3 to 5% of the costs of the house in the slush fun).
There is nothing wrong with having a 3 to 5 year plan to move towards home ownership. It will increase the probability that you own the home for a long happy time.
No down payment...
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