Is there any way you can buy a house without using your own or little money in the OC?

Answer 1

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 2-6 percent of the selling price, and you ask for 4-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score.

By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.

In some of the Assistance programs, there is a course you need to take, it is a very easy course to do, and can be done on the computer, when you are done, you print out a certificate, and that is turned into the company for them to fund your assistance. There are some guidelines, since some of the programs are a government program. Check into some of the links that is listed under your responses. If you have any collections or judgements, they normally have to be paid in full prior to your closing, and proff sent into underwriting.

Also: Decided on the type of program (loan ) you are wanting. Conforming A+ Client, will be at a 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

The 103 - 107 LTV Loan Programs are something to look at also, so you can roll cloisng costs into your loan, and save your money for new furnishings (draperies, furnature, etc) Just an Idea.


Good Luck to you - A Broker, who cares, will go over it all with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.

Answer 2

Possibly. There are programs in some areas that let you finance up to 107% of the purchase price (the difference covers closing costs).

But I suspect most homes in the OC are too expensive for those types of programs and you will need good credit.

You might be able to do a lease option. This is where you are a tenant, but part of your rent is credited towards the purchase price. In other words, you are building up the down payment.

Realistically, if you don't have the money management skills to put aside savings for a down payment, you are not ready for home ownership. There are a lot of expenses with owning a home and you won't be able to keep up without good habits.

Learn to save first. You'll be a lot more successful.

Answer 3

Some of these are totally illegal so make sure this isn't a scam. Some of these tell you to do this: Find someone in financial trouble Offer to take over their mortgage if they deed the house over to you. They get to keep living in the house and in a year they can buy it back from you for an additional $25k. They sign over the deed. You market the property, try to sell it in 90 days. If it sells, the buyer evicts the original owner once they now own the house. If it doesn't sell you rip up the deed, throw it away, and the bank forecloses on his house and thows him out. Nice, huh? I'm sure there are many legitimate programs but these are the ones you typically see on late night infomercials. And in California anyway, this is totally illegal. Now if you approach the same seller, assume his mortgage legally, and he moves out without losing his house to foreclosure everybody wins. He is relieved of his financial burden, you obtain the property far below market value and flip it for a quick profit. Unfortunately for you, there are "professional" investors who are much more skilled at this and can pay cash for the guy's house so they are the ones who seem to have success doing this.

Answer 4

There are many lenders out there that have Zero Down programs and will do 100% financing. It depends on your credit and other issues such as income and monthly debts, etc...

Some of those programs have loan amount caps, but there are many out there, so it shouldn't be that hard finding an appropriate one, get pre-approved for you loan now, so you know how much you can afford. Then you'll know if the properties in the OC are available to you.

You should work with a competent mortgage planner on your needs and situation to find programs that are available to you.

Answer 5

There are many ways this can be done. Wth the changing realestate market in OC, sellers might be more willing to pay some or all of your closing costs. Combine that with 100% financing and you wouldn't have to come in with anything.

Answer 6

Check with a lender in the area in which you want to purchase to see what "First Time Home Buyer" programs are available. These programs are govt. funded and if you qualify with the guidelines the govt. will provide your money down plus closing cost at the time of closing.

Answer 7

You could go the normal route and find a mortgage company that could do some research and find a lender that can help you finance the purchase of your home but there are other programs out there that are for FTHB (First Time Home Buyers) and give down payment assistance, etc. These programs have price limitations and some restrictions BUT they are very good for FTHB.

Here is an article I wrote about them, hope you like it:

SPECIAL LOANS HEPL LOW INCOME NEW HOME BUYERS GET INTO A HOUSE

I can help buyers obtain loans at good rates but not even I can help everyone looking to buy a home. I am putting this information here because there are those special cases that need special help like the help provided by special loan programs geared toward low and moderate income first time home buyers as well as teachers looking to purchase a home.
There is a state loan program that has already helped moderate-income buyers get into homes.

The 35yr mortgage, has been around for about 7 month, it offers fixed interest rate for the life of the loan and what makes it even more enticing, it offers interest only payments for the first 5 years. When compared to a traditional 30yr mortgage, it could boost borrowers’ buying power by $50,000 to $100,000.

Not everyone qualifies for this loan: Borrowers must qrualify as first-time home buyers (if you have purchased a home years ago but not owned one for years, you could qualify, check their guidelines), qualify within CalHFA’s income and home price caps, which vary by region.

This loan program offers below the market interest rates (currently around 5.75%), which is very helpful in today’s market that has shown continuous rising of interest rates. With the absence of this loan program many home buyers were already looking to stretch their purchasing power by obtaining riskier loans: interest only loans, variable loans with a 1 to 10 yr fixed rate period. These riskier loans don’t help borrowers build any equity. Borrowers simply hope that they will earn equity on their homes by relying on the hot real estate market. Today, it is a different story because home prices have begun to flatten out this fall after roughly doubling in the past 4 years. There might not be a bubble bursting as many predict but as I explained before we should expect far less appreciation if any in the coming years, but once again let me reiterate that no one can really predict exactly what will happen. If there was a small dive in the real estate market, many homebuyers with riskier loans will be at risk.

The best way for anyone but specially first time home-buyers and working families to build wealth as well as a safe financial future for their family is to get a fixed-rate loan instead of the riskier variable loans and consistently pay down the principal to continue building more equity.

Other types of programs offered by CalHFA are:

Low Income (helps low income families buy a home)
Extra Credit Teacher Program (ECTP loan program geared to help teachers buy a home)
Self-Help Builder Assistance Program (SHBAP)

Remember all these programs have income and home price limitation by regions.

Visit this website for more information:

www.calhfa.ca.gov 800-789-2432

If you are interested in any of these programs give me a call 408-505-6980 & I will put you in contact with a specialist on these loans (Spanish speaking as well)

Other similar programs available are the Acorn Housing programs.

These programs offered have lower interest rates, lower down payments and more.

Visit www.acornhousing.org or call me for more information.

I hope this information will help you if not pass it along to some one that does need it.

Answer 8

A non-profit Ameridream will pay your down payment or closing costs.Everyone qualifies!!