I am 22 and want to start getting onto the property ladder. I have no deposit and want to buy alone.?

Question

What would be the best way to start? I am 23 and earn around £12,000

Answer 1

The question stated as it is the answer would be ...you can't.

But, if you have no deposit and are determind here is what you need to do: 1) find a homeowner who is selling the house' owner holds mortgage'
2) if there is no one in your area find someone selling ' owner pays closing costs'
3) your first purchace can be a pre-rented house or apt building rent guantees income to pay mortgage....you can argue that you have a direct deposit or cash only ( always provide a receipt)policy on the rent and you want to create an account for direct withdrawl of the mortgage payment.

The only oher way is to ' go in' with somebody and when you build up your credit and bank account then you you can pull out and start your own.

Also don't forget your county's tax sale homes...you can call your local county tax office for information

Good luck.

If you live in PA, get back to maybe we can do this together, lol.

Answer 2

You can always try and apply for a 100% mortgage - they are excellent if you do not have enough for a deposit but shop around for a decent rate.

However, I hate to have to say that I don't think you will get very far on £12k. The best you could possibly hope for is a multiple of around 5 which would give you a loan of £60kish. With house prices as they are today I doubt you could get very much for that.

Consider going in with a friend / partner / parent if possible - you can always buy them out later when you are earning more.

Answer 3

Anything is possible. A famous adage reads, "Whether you think you can or think you can't, you're probably right."

Most people here have said what you propose is impossible. I disagree. I would take from their comments that it could be difficult continuing on your present path.

My suggestions:
1. Educate yourself on real estate. Research online. There are numerous forums and real estate sites. You will learn a bundle. Read books. Check them out at the library for free. First, accumulate knowledge, it will serve as the bedrock of your dream. A good book to check out: The Automatic Millionaire Homeowner, by David Bach.
2. Examine your lifestyle. What are you willing to give up and/or change? For example, can you look for another, higher paying job? If you are the least bit entrepreneurial I encourage you to look into starting your own business on the side to generate more income and help with taxes. There are many opportunities for very low startup, homebased, part-time businesses.
Also, you may even consider moving. If you live in a pricy city, compare real estate and cost of living there to rural areas.
3. Capitalize on your strengths and follow your gut instinct.

I'm not going to wish you good luck, rather, good choice.

Answer 4

I dont know conversion, so I dont konw if your 12,000 is anything like $12,000 here..... but that aside, I bought my first house at 20 years old.

If you have reasonable credit, go to a bank or mortgage broker and get preapproved. They'll tell you exactly how much you qualify for and if you can do 0 down. THEN you can shop and see if the amount you are approved for can get you anything worth while.

Answer 5

It's difficult to disagree with the first post. That will be tough. The only way you could probably do it is with a 100% mortgage but then you are getting yourself into debt for life.

I would advise a bit of patience. Keep renting and build a deposit. You never know, the property market might cool down a bit in the meantime.

Answer 6

I would suggest going to your bank or a mortgage professional and talking to them about your options and whether or not you can accomplish this on your own. However, even if they tell you "yes", talk to a few other banks/lenders as well. It's also a good idea to talk to a real estate agent/broker. They not only know the market, but they are an excellent resource for various other programs that might be able to help you (first time buyer programs, government grants). I hope this works out for you. Good luck!

Answer 7

Given your salary and the fact that you have no down payment, buying alone is almost surely an impossibility. The issue would be qualifying for a mortgage for your property. I would consider getting a loan from relatives (if that is possible) if you really want to buy alone. Otherwise, you can get into the market if you buy with a flat mate. This will at least allow you to begin to build equity. However, do your research first -- both into the market and into any prospective flatmate that you are going to tie yourself to! You don't want to be buying when the market is at its hottest, if possible. And you don't want to be financially tied to a flatmate or flatmates who can't carry the other part(s) of the mortgage.

In my opinion -- save, save, save and get a downpayment together.

Answer 8

Hi, try northern rock they have a mortgage product called the TOGETHER and they will lend you approx 5 times income (£60k) and will lend you 95% secured and up to 30% unsecured on the property. So you could lend up to 125% of the property value. Not sure what you could get for £60k these days though? Good luck!!!!

Answer 9

Unless you are willing to live in a shed or caravan I am afraid you have no chance...unless you could buy a wreck at an auction and you still need to have approx.£4000 to cover fees.You are taking a big risk if you borrow more that 4 times your salary which means your max budget will be £48,000 and you will need to save a minimum 3% deposit- Halifax and a few others lend f.t.b. 97 % mortgages.

Answer 10

Sorry twinkle, the news is not great. Most high street lenders will only offer you 4-5 times your annual salary. Unless you are prepared to buy a house in a cr@p area, this will only get you 60k. Hence no nice pad. Save a deposit and you will find its so much easier to get a normal deal on a mortgage.