How do I get a down payment for a home loan?

Question

I have good credit but I am not good at saving. Do people typically borrow the down payment or do they actually have to save it? If they borrow what kind of loan is it...personal?

Answer 1

it's possible to get a 100% loan. no money down

Answer 2

I do so wish people would say where they are from when asking these questions! Here in the State of Calfornia, and in many other states, there are down payment assistant programs. You can get up to $30,000 toward your down payment here. It is at a very low interest rate; not payments are made on it, and you pay it back only when you sell. It is a great program. If you are a teacher in an underperforming school, or a cop willing to live in an urban area, the down payments are forgiven when you sell.

Please don't forget to look into the first-time buyer programs. These give you a below-market interest rate and offer many of the same programs as far as length of loan and interest only, etc. that conventional loan companies give.

Go to your local State Department of Real Estate or to N.A.R. org to investigate and educate yourselves. Before you think about getting involved with a mortgage broker, (very expensive), go to a reputable direct lender like your local bank or Countrywide Mortgage or Washington Mutual Bank. Mortgage Brokers will take you to the cleaners. They are good for some situations, but not yours.

100% financing will get you in to a property, but not much of one. That is not a bad thing, necessarily, it is a way to start.

Once again, if you are from CA, I can help you find the resources. I make no $$ from loans; I have nothing to gain from helping you out.

Please do your homework on this and don't get sucked in without knowing exactly what you are signing up for.

Answer 3

The definition of a down payment is money you pay up front out of pocket. What you're asking is to have a 0% down loan. As other's have mentioned, there are a couple specific programs which allow this, but you need to qualify for them. Before the housing bubble burst, 0% down loans were more common. Most of those that got those loans have since lost their homes to foreclosure. Banks don't do this anymore.

Answer 4

One cannot generally get a loan for a deposit or down payment (at least where I'm from). Since you are a poor saver, check with your local banker about an interest bearing account that restricts your access to withdrawl -- like locking in a 1 year CD or more depending how long you estimate you will need to save. Years ago savings bonds would have been good, but if you are looking to purchase in the next few years, you will lose the interest.

There are some that require low downpayment but remember the lower it is, the higher the mortgage will be.

Good luck!

Answer 5

You can get 100% financing with the seller paying up to 6% for closing cost. Basically you can get in a home with no money out of pocket. Still a good idea to save though. email me if you need more information about financing. [e-mail] .

Best Regards,

Anthony

Answer 6

I am in the process of buying my home in Kansas. Kansas gives first time home owners up to 4 grand in down payment assistance. I am using that for closing costs. my total cost to close is only 800 bucks. And i am getting 100% financing.
:D
good luck

Answer 7

Go to your Bank if you got good credit then you have no worrys