I see all of these info-commercials that say you can buy a home with nothing down and zero out of pocket....Is this really possible? Can this be done without being expected to pay outrageous monthly payments? What if I have mediocre credit? Do these info-commercials only focus on cash-flow business or can I buy for myself without being expected to sell the property immediately?
2006-08-03 03:46:41 · 12 answers · asked by Bryan W 2 in Business & Finance ➔ Renting & Real Estate
It is possible but you are better off with FHA loan (FHA insured loans)
http://www.hud.gov/offices/hsg/sfh/fharesourcectr.cfm
2006-08-04 00:50:56 · answer #1 · answered by roy_s_jones 6 · 0⤊ 0⤋
Absolutely you can buy with zero down and even no money out of pocket. You need to negotiate seller to pay closing costs and some mortgage brokers will even allow the appraisal to be included in those closing costs. Keep in mind you would need a 580 mid score to qualify and the higher the score the lower the interest rate. You can avoid mortgage insurance by doing a 80/20 loan and thus saving a couple hundred bucks a month. I recommend working with a mortgage broker as they have hundreds of lenders who will compete for your business from the broker. I personally am not a fan of the info-commercials as they are not selling their ideas and what works for one doesn't always work for everyone else. I recommend sitting down with an experienced Realtor and a CPA so you truly know what your getting into. I hope this helps you but if you need any help or have any questions feel free to email me tadgeman@yahoo.com.
2006-08-03 08:41:46 · answer #2 · answered by Dan 3 · 0⤊ 0⤋
This is how it works:
Get a 100% financing as a 80/20 loan. Mid FICO score must be at least 620 Full Documentation (w2) or Stated (1099).
Than you must get the seller to write into the purchasing contract (print this)
Seller to contribute up to 6% of the Buyers recurring and nonrecurring closing cost. This will cover Title Fees, Loan Origination fee's and other costs on the Good Faith Estimate.
The only out of pocket you can pay for is a Home Inspection. That usually costs about 350-500.
So technically if you dont want the Home Inspection than you can purchase a house with no money down.
2006-08-03 04:05:22 · answer #3 · answered by Openthathouse.com 4 · 0⤊ 0⤋
Yes you can. I dont recommend it.
The less you pay now, the more you pay later.
They can give you a 1st mortgage at 80% loan-to-value (ltv)
give you a 2nd mortgage at 20% ltv
probably charge you PMI, which is insurance to cover the lender in case you dont make your payments (costs about 300$ a month)
you will be charged higher fees, points, closing costs
all fees will be financed into the loan, so you pay interest on top of the fees (which ends up even more than the fees over time)
you will probably only be able to afford an interest only loan this way, which means you only pay the interest, the principle never goes down, so its like renting your home, BECAUSE THE BANK OWNS 100% of it.
be very careful about this
2006-08-03 03:57:57 · answer #4 · answered by xrionx 4 · 0⤊ 0⤋
Yes, it's possible. As long as you have a 580 or higher score and a job, you're in good shape. You can also get a seller's concession to cover the closing costs, so the only out of pocket expense is an appraisal (around $300)
2006-08-03 14:44:35 · answer #5 · answered by Jonathan S 2 · 0⤊ 0⤋
I don't really trust these infomercials, HOWEVER
Many states and cities have First Time Homebuyer programs that would give you a mortgage for very little. Sometimes you only need to come up with a 3% downpayment and there are even others that give you 100% financing.
Find out what's available in your area. These programs are specifically designed for people with a moderate income who may not have stellar credit. You may need to take a simple homebuyer course, but they are there to work with you and get you the mortgage you need.
2006-08-03 03:59:00 · answer #6 · answered by ♪ ♥ ♪ ♥ 5 · 0⤊ 0⤋
Yes Bryan, there are programs out there acalled 100% financing loans..
Usually they are broken up into two loans...80% 1st mortgage, and 20% 2nd mortgage...
As for the payment, it really depends on your credit score...
You need at least a 580-600 score to qualify, and the higher it is above that, the better rate you will receive...
If you are interested in hearing more about what you qualify for, feel free to give me a call..
My name is Jason Fry, i work for Providential Bancorp, a nationwide nortgage lender.. Call me at 312-264-6448, or email me at jasonf@providential.com
thanks, and good luck!
Jason Fry
Licensed Mortgage Consultant
Providential Bancorp
312-264-6448
2006-08-03 03:55:19 · answer #7 · answered by Anonymous · 0⤊ 0⤋
John T. Reed debunks the vast majority of those here:
http://www.johntreed.com/Reedgururating.html
This is not a blanket recommendation for or against Mr. Reed in general, but his debunking is worth reading.
100% loans are easy, but I can't imagine an agent allowing a client to accept an offer that doesn't have a good faith deposit.
2006-08-03 09:05:01 · answer #8 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
well sorry but i have been to a bunch of siminars and the main reason they give them is to sell their ideas so if it were true why do u have to pay for their stuff and if u pay for their stuff in my opinion it was paying something down if u know what i mean there are ways to get grants but couldn't tell u right now i'm reserching it tho if i find out how i will not charge u for the answer
lol hope we both find a way tho good luck to you!
2006-08-03 03:57:53 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes, everything is possible. read the book by robert allen no money down.
2006-08-06 20:05:47 · answer #10 · answered by 1001Questions 2 · 0⤊ 0⤋