2006-12-19 09:10:44 · 11 answers · asked by gleefulgirl44 1 in Business & Finance ➔ Renting & Real Estate
My husband and I bought a zero down house in 7/2005. It was a first home and primary residence. We did have to come up with the closing costs however ($4600). I took a distribution from my retirement plan for that.
The lender wrote two loans for us. The 1st mortgage was for 80% of the purchase price, interest only for 2 years then it will start to adjust. We did not have to buy PMI (Mortgage insurance) because it was only 80% loan. The other 20% loan is a fixed rate (somewhat high, 9.1% but that's okay since it's only 20%). We will refinance in 7/2006 and by that time should have enough equity to still avoid the PMI as we bought during a robust, rising RE market. Hope this helps!
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2006-12-19 10:29:14 · answer #1 · answered by jpmcauliffe 1 · 1⤊ 0⤋
No matter what you do, you'll have to but down some kind of money. Whether it be a deposit or earnest money. You can purchase a house with 100% financing. Most likely, you'll need to see a mortgage broker as major banks most often can not lend to 100%. (They do, but they don't make it easy.) You'll need at least fair credit.
If you have poor credit, you can always look for Lease-Purchase homes or "Rent to Own." Your deposit and a portion of your rent will be applied towards the purchase price. And after a year in the residence, you can use the equity to help purchase the home. If you go this route, be sure to pay all of your rent payments on time, and pay with ONLY a personal check.
2006-12-19 17:20:58 · answer #2 · answered by Joe L 3 · 0⤊ 1⤋
conventional loan. if your credit is very good, you can do an 80/20 "combo" loan or 1 loan 100% financing or 1 loan 100% financing with lender paid mortgage insurance. See a loan officer or a bank for details on each program, but if you utilize a good real estate buyer's agent, they should be able to negotiate the seller to pay up to 3% of your purchase price towards your closing costs. Conventional loan programs will allow up to 3% at 100% financing. You usually have to bring $500 of your own money into the transaction (ie: earnest money deposit will usually suffice).
2006-12-19 17:19:39 · answer #3 · answered by lawrus2000 1 · 0⤊ 0⤋
You have several options. One is to secure 100% financing from one lender. This probably means that you will have to pay PMI, aka Private Mortgage Insurance. It's not tax-deductible. Another option is to get 2 loans: one at 80%, the other one at 20%. The 2nd one will have a higher interest rate, but will be tax-deductible. The best scenario for you will depend on what rates you can get on these mortgages, and your tax bracket.
The sellers will probably not be thrilled about 100% financing, but if you are not buying in a super-hot market, you should be fine. Your realtor can help you with massaging an offer to make it more attractive to the seller.
Good luck!
2006-12-19 17:21:08 · answer #4 · answered by Joe 1 · 0⤊ 1⤋
VA loans are the next best but any mortgage without 20% down will mean you pay extra for PMI every month.
Maybe try really hard while real estate falls in 07 & 08, to save the 20% down !
And go for a 30 yr fixed - ARMS are the fast trak to helll .
2006-12-19 17:20:26 · answer #5 · answered by kate 7 · 0⤊ 0⤋
Have your experienced Loan Officer present you with several no down payment options. First you'll need to complete a full application, have your 3 credit scores pulled so an accurate analysis can be done and accurate programs quoted.
2006-12-20 08:13:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, this means you will need to secure 100% financing. The down side is that you will have difficulty in finding a seller that would be willing to go into contract without a deposit.
2006-12-19 17:15:13 · answer #7 · answered by jseah114 6 · 0⤊ 0⤋
Well me and my husband are military so we did a VA loan. If you have any military history you can do that... Or some FHA loans do not require and sometimes it depends just on the lender company and the seller.... If you are in a thight money situation I reccommed you look into the bond and grant programs in your state that will help with closing costs and such!
2006-12-19 17:22:05 · answer #8 · answered by miss_kendra2005 2 · 1⤊ 0⤋
Asothers have mentioned, using 100% financing. However, you can see if the seller is willing to pay a percentage of the downpayment:
www.ameridream.org
Regards
2006-12-19 19:41:32 · answer #9 · answered by Anonymous · 0⤊ 1⤋
100 % financing at very good rates is possible provided your credit is not horrible . Just write me down the value of your home and the other details and I will see the options from my end .
My mail iid is kishaloy_bhowmick@yahoo.com
regards,
kish
2006-12-19 21:08:26 · answer #10 · answered by kishaloy_bhowmick 2 · 0⤊ 1⤋