how do I buy a house with 0 down?

Answer 1

THE PEOPLE ABOVE ARE TOTALLY WRONG.
TO BUY A HOUSE WITH 0% DOWN YOU NEED A 580 CREDIT SCORE IF YOU ARE GOING FULL DOC .A 620 if you are going stated. If you have no money for closing cost you will need to do a seller concession (6% is the max) IT IS AGAINST FEDERAL LAW TO GET CASH BACK AT CLOSING.DO NOT BELIEVE THE JERK ABOVE. PEOPLE GO TO JAIL FOR IT.

Answer 2

Depends on a few things...
1) do you plan on living in the house?
2) how is your credit,
3) do you currently have a house
4) does your area have a local housing authority?
5) Are you buying a new home?
6) Can you get your seller to contribute
7) are you looking for an 80%/20% loan?
8) are you a Veteran

Last year there were several 100% programs. Unfortunately with the increase in foreclosures throughout the nation, some lenders have stopped providing 100% programs.

I would talk to a mortgage broker and see if they can help (mortgage laws are different in every state). They will prequalify you for how much house you can buy and how much money you need to close (down payment +closing costs) . Then take that information to a REALTOR and they will try to find you a house where the seller is willing to contribute the necessary amount. It may increase the price of the home, but you would be able to buy the house. (they won't usually contribute for an investor, only an owner occupant)

Answer 3

Zero down is possible with the help of a skilled realtor and a mortgage broker that can get you the right loan program.

First of all, realize that when you buy a house for say $150,000, you're going to pay about $155,000 once all the closing costs are added in. The lender and inspectors and attorneys all want to get paid, you know.

So a skilled realtor will advise you to put "seller will pay up to 5k in buyer's closing costs" (number may vary with the price and what the seller is willing to do, it is NOT always 5k.).

So what that does is has you looking for a loan of 155, and if it appraises for that, you might well borrow the full amount, and that has the money for the closing costs included.

Answer 4

It's up to the bank. Sometimes they might lend 100% of the value of the property -- depending upon what country you live in and what the current lending market is like, etc. If so you are able to buy it with $ 0 deposit.

A trick is used by many property investors to overcome situations when the bank will only loan, say, 95 % of the value of a property.

They negotiate a sale price with he seller, say $ 300,000. However, if the bank will only lend on 95 %, they could only borrow $285,000.

So, they then have the property revalued by a valuer that is accredited with the bank they want to borrow from.

Suppose they valued the property at $325,000. The bank will loan 95 % of that amount, which is $308,750.

You buy the house for no money of your own down -- plus receive $8,750!

Answer 5

The rule of thumb states that one can borrow (subject to favorable credit reports), an amount whereby the monthly mortgage payment (including principal, interest, taxes and insurance) does not exceed 25 percent of the gross monthly earnings. At $40,000 annually, your monthly gross earnings are $3,333.33, and 25 percent of that is $833.33. That is called the "Income Ratio."

The next ratio, called the "Debt Ratio" is that the monthly mortgage payment (principal, interest, taxes and insurance) plus your monthly recurring debt (car, credit cards, etc. but not rent) should not exceed 36 percent of your gross monthly income.

If you have a really good credit report, have been working in the same field for a certain time, I should think you ought to qualify for up to $120,000.00 mortgage loan. If you paid 10 percent down, then you could buy a $133,333.00 home (Cash down payment $13,333.00 Mortgage loan $120,000.00 = Sales Price $133,333.00).

Having said all that, there are a lot of variables that go into the underwriting process of a mortgage loan. I have seen Income Ratios of 30 percent or more, and Debt Ratios of 40 percent, even 50 percent and higher. The key here is to work with a mortgage broker or mortgage banker you trust and be completely truthful with him or her.

Answer 6

There are right ways of becoming rich and this is seriously not the way. You're saying, you're willing to take a super maximum loan (which of course isn't difficult) if you qualify?
The right way would be to pay up a minimum of 15% down-payment and a short repayment period. Also, what should be of importance to you is that the interest is calculated on the daily basis instead of monthly. Because your main purpose is to pay the least amount of interest.

Answer 7

100% Financing With Flexibility!

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American Home Mortgage’s Choice Flex is a risk-based product that allows flexibility in credit, documentation type, assets, debt ratios and employment history. With just a 580 credit score, you may be able to get 100% financing on your new mortgage or refinance!

• Adjustable and fixed rates available
• Interest-only programs available
• 100% financing available with FIFA and 580 credit score
• FIFA, SIFA and No Doc permitted
• You only need to be one day from a bankruptcy discharge!
• 6% seller concessions permitted
• No mortgage insurance required
• 540 minimum credit score (interest-only options available)

Call me today to learn more about getting 100% financing with the Choice Flex loan!

Denielle Hass
American Home Mortgage
5885 SW Meadows Road, Suite 130
Lake Oswego, OR 97035
Office: 971-249-1455 ext 225
Cell: 503-545-0453
Right Fax: [phone]
[e-mail]
www.americanhm.com/denielle.hass

Answer 8

your best bet is to find an experienced Realtor. He/She will guide you through the process.

Answer 9

Work, save, don't borrow too much, pay on time and you may qualify.