Do I have to have a down payment to buy a new house?

Question

My brother says you can get a house with a very small down payment. I own the family home. Dad gave it to me before he died and I do not want to sell it. The family would be really upset. Its not worth much. Taxes says its worth about $65,000. I have invested a fortune here and now I need new siding and a roof, and some re-wiring. but think maybe I should just move to a more modern home.

this house is huge and it has a lot of stairs. I moved my dad into a rental property and paid his rent, so he would be safe. I already know, there is no way I can retire in this house. It wouldnt be safe for an old person. By the time I get a new home paid for, I will be old.

Answer 1

In some cases you can get the seller to do a 'Gift of Equity' or make the down payment as part of concessions of the seller. Motivated sellers may be willing to work with you for creative financing as well.

There are plenty of lenders that do 100% financing... on average 680 or better credit score, although some will work with lower scores. The better your FICO (credit) scores are, the better the rate will be. The 80/20 loans are often used to avoid PMI (private mortgage insurance) and can be a good way to go if you know you will not be moving for a long time. Keep the home for a while, then have a broker or mortgage planner run the loan to see if you can consolidate the 1st mortgage and the piggyback 2nd into one loan and avoid PMI.

Answer 2

Current Home:

Yes you can get 100% financing as long as you have a good fico score that will meet the financial guidelines for each product. If you are going to do the repairs than I would go and get a Closed end second mortgage or Heloc. I dont like helocs because they are inflated credit cards. So if you want fixed payment w/ fixed rate than run with a closed end second. Local banks and Credit unions have better rates and lower closing fee if any.
If you want a newer home and need a downpayment to cover costs on the family home and new home you can do this as well. Sometime with a heloc or closed end second. If not refinance the house and pull the money from the equity.
Bad: You house will be reassessed at the current county tax and that great tax your dad was paying is gone.

New home:
If you feel this would benefit your lifestyle and better for your family than do it. Just make sure its something you want because rates are getting bigger and now is a good time to lock. next hike expected Aug. 8. so be prepared

Answer 3

First of all the value you quoted is "tax value". This is not what the house is worth. To find out go to www.zillow.com, and Yahoo Real Estate, and look at HOME GAIN check the property's address there for comp. sales in the neighborhood.

If you are a first time buyer, been on the job 2 yrs or more, and don't have excessive credit card debt you may be able to get an FHA 5% down loan. You will have to pay an additional monthly fee called PMI until you establish 20% equity.

You are much better off getting approval w/20% down. You'll get a better rate, and no PMI. There is also something called a piggy back loan whereas 2 loans are made simultaneously one for 80% one for 20% which allows for no cash down, and no PMI. Then you are what's referred to as "mortgaged to the hilt". Not a good choice if you needed to borrow equity for repairs to that house.

See what your house is worth, you may want to get a home equity loan, and do the repairs. It will probably bring more at sale if you decide to sell.

Answer 4

There are lots of ways to buy a house without a down payment--but the question is whether or not it's a good idea. Just remember that whatever you don't pay up front, you'll pay that and interest if you finance it all.

Regarding your Dad's place, it would probably cheaper in the long run to make the improvements since the house is paid for. You could take out a home improvement loan and do some amazing things to the old house and increase its value in the process for a lot less than buying a new home.

Either way, though, unless the fam wants to pitch in to help you out, I wouldn't weigh their opinions too heavily.

Answer 5

It may be possible for you to get a home with little or no down payment, but your credit score has to be REALLY GOOD (at least 720). The problem with buying a house without putting down at least 20% is almost all the mortgage companies require you to have mortgage insurance, which can cost you as much as $200.00 a month for NOTHING. Bear that in mind before you get rid of the family home.

Answer 6

You can do one of two things:

1) Finance more of the new home, and pay a higher mortgage

2) Take some cash out of the older home, and use it as a down payment on the new one.

I'll bet you can rent out the old home for the cost of all the financing plus the maintenance fees/bills. E-mail me if you feel comfortable at [e-mail] and together we can figure out the best solution for you.

Answer 7

If your credit(FICO) score is over 580 and you can prove your income (W-2, or tax returns, bank statements, etc.) then you could do an 80/20 loan. However you still have to come in with closing costs unless the seller pays them. Closing cost vary and could be as high as 5% of the purchase price. Contact me if you have any questions.

Answer 8

In 99% of times, you are required to supply a down payment. And the rule of thumb is 10% of the amount of the house.

However, there are some programs out there where there are low down payments (<10%) and there are programs that have 0% down payment.

Answer 9

it is been executed for the previous quite a few years, regrettably with some disastrous consequences for individuals that have been given in without down value and now won't be able to refinance into extra clever costs or sell with the aid of fact the valuables is properly worth under they offered it. maximum lenders have executed away with the a hundred% purchases (which became 2 loans blended often to cover a hundred% financing), yet FHA facilitates 3% down value- and money could be proficient, and FNMA introduced clever June a million, in addition they're going to enable 3% down money.

Answer 10

No you do not need a downpayment. you can get 100% financing but you will have to pay a private mortgage insurance(PMI) which could be 200-600 a month