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first time buyer

Some time ago I try, the process to find a house using my cousin as my agent and a local mortgage lender they told me that there were a lot of government programs out there for me, that will give me the chance of little or no money down, as well as pay the closing costs. It would also give me the lowest interest rates. Does those programs still available in today's market.  If so, how do I indicate those needs when I do a mortgage quote, on your site..
  • April 26 2010 - Waterford
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Answers (5)

There are definite ways to have seller paid closing costs in your offer, i.e., Listed house for $150,000 and you offer $145,000 with $6,000 in closing costs - Net offer of $139,000.  How much of closing costs can be asked for depends on the program (FHA or CHFA or ???) and when you make the offer.  FHA loans are being capped soon to be a maximum of 3% (from 6%).  I have people you can speak with if you need them.
  • April 26 2010
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It sounds like the may have been discussing either FHA or USDA loans.
With FHA, often you only have to put down 3.5% as a down payment, and then you can sometimes negotiate with the seller to pay part of your closing costs.

With USDA loans, you may be able to finance 103% of your purchase price, eliminating the need for a down payment and most closing costs.

However, why not check in with the mortgage lender you were previously working with?  Discuss with them what is available for you now.
  • April 26 2010
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From my understanding,  it sounds like you local lender may be trying to help you qaulify for a possible grant or assistance program which in some cases is offered by either State, City or local groups.  These programs can in some cases be combined together to creat a rather amazing purchase option.  I'm not certain of your area but your local lender should be able to either help you qualify or at least guide you in the right direction to finidng the proper answers.  The 100% USDA and 96.5% FHA options are also very good so either way you go I believe you will have solid options in buying a home.

P.S.  USDA funding is very tight so I would be careful in running this option unless you have a purchase agreement in hand right now.

Best of luck :)

  • April 26 2010
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Thank you all very much in all of your answers.. You've been a great help.. I knew about the FHA loans and CHFA loans but, I didn't know about the USDA loans. I will have to look into that and see what the is..  Mr. Melbostad. I did see your P.S. and will keep that in mind when talking to my agent or while researching online..

Thank you again,

David Young
  • April 27 2010
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The USDA loan is not a great option because they are almost out of funding and it does not appear that they will hve funding until October 2010.  The CHFA loan with down payment assistance is your best bet.  They will loan you they down payment and closing costs, if you have a need for them and if you qualify.  I can help you find out if you qualify for the CHFA loan.
  • April 29 2010
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