How do I buy a house with no money down ....?

Question

and no closing cost out of pocket? I found some good investments and I'm not really willing to put $9000 down for closing cost on them. I wouldn't mind all of it to go into the mortgage since these houses will be rentals paying for themselves and cheap enough that monthly payments won't be high. I'd also like to be able to take out up to $10000 for repairs and initial mortgage on all three while I'm fixing them. Do you know how I can do this? These places are in Upstate NY. I need to find a bank that does this sort of things. I'm a first time homebuyer who makes about $45K a year and credit score in low 700s. I'll take a partner into this deal and we both make about the same a year.

Any help will be appreciated. I'd appreciate info from people who've done this or know how to do this. Step by step instructions would be great.

Thanks!

Answer 1

nobody is going to do 100% on a investment prop you are going to need to put money down. I am a Sr. manager at a mortgage bank

Answer 2

Talk to a mortgage broker about your goals. Since you are a first time homebuyer, the first property you buy will be considered a primary residence. You will get the best rates and terms possible on this one, provided you have good credit and sufficient income. There are many lenders that will lend you 100% of the purchase price and you can ask that the seller pay your closing costs.

The other properties you purchose would be considered investment properties or perhaps a second home. The rate and terms won't be as favorable on this. There is also a good chance you will need money down.

As far as the money for renovations...those loans are more difficult to get. You may be able to borrow against any available equity you have in the first home. Or you may be able to borrow against the equity in the investment properties after they are already in your name. There are rehab/purchase loans available, but they are harder to qualify for.

Talk to a mortgage broker, they will put you on the right track. There are many things to consider about investing in real estate, I suggest you also talk to a Realtor.

Answer 3

Your credit score is reasonably good. Avoid mortgage brokers. they charge often ridiculous fees, lie often and don't have money to lend anyway. Talk to a local lender with a bank. Your credit score, credibility, and experience in maintain property may ALL be considered. Show them that you are worth the risk. The lender will tell you, step by step, what you need.

Answer 4

Check with your local lender. See if they have a preapproval program and if so do they have any government loan programs. You will find out if you qualify for FHA or rural housing. Ask a realty office for a list of banks in your area that are willing to work with you. It may take some time, but it will be worth your while. Good luck

Answer 5

there are mortgage brokers that can find lenders with no closing fees, but interest rates tend to be higher. i'm not sure if interest-only loans are the way to go right now especially since the real estate market seems to be softening up with the rising interest and inflation.

check websites like bankrate and lendingtree for interest resources and also check your local brokers for help.

Answer 6

I would suggest renting to own. I did the monthly payments are low and you get some pricks of owning a home and some pricks of renting a home such as you can do renters insurance, your not responsible for taxes and in the end however after you make all the payment the house is yours

Answer 7

why not buy one home live in it for awhile and flip it then use your profits to buy more properties or sell it on contract and refi and invest the money into buying more properties