Can I buy a house without upfront closing costs?

Question

I have a good credit score, (784) but not much in savings. However, I think the time is coming soon for me to buy a house. I just want to start preparing now and I am tired of paying rent.

Answer 1

We bought ours through a private seller and they paid our closing costs. They also made the down payment and just added it to the price they were asking.

There are also a lot of people that rent to own. They will take part of your rent each month and apply it to your down payment and instead of paying the bank your payments you pay the original home owner. You just make a contract up through a lawyer.

Good luck.

Answer 2

you have a lot of answers that are interesting and all of them are full of some sense of truth. the answer is yes you can buy a house without closing costs if you can get seller concession and look at fha loans, or va if you are a veteran. the other issue is going conventional, with that being the most common mortgage obtained, you will have some closing costs. the biggest miscommunication is 100% financing. that means the down payment is included usually with a split loan amount. there is another financing that usually is not discussed. when you seek the piggy back loan you get your first normal 80% at the prime rate you get by your credit score. the 20% that would count as the down payment is at a higher interest rate, and shorter term. you will have closing costs on both. that is 100% of the purchase price, the closing costs average 3% above the asking price.....this means you are asking if you can get 103% financing, and no you will not get that. hope this helps, i know it is daunting and trying to put all the pieces together is tough. if you want to ask any more questions, feel free to email them to [e-mail]........good luck!

Answer 3

With some mortgages, you can incorporate the closing costs into the mortgage (which means you are borrowing more than the purchase price).

You will have a more difficult problem trying to find a house where the seller will be willing to go into contract with no deposit or earnest money. They will generally want 5% down.

Also, your mortgage amount will not only be dependent on your credit score, but also on your income. You could have the highest credit score in the world, but you're not going to get approved for a mortgage where the mortgage payment is too high in comparison to your income. Generally, lenders will not approve a mortgage where the monthly mortgage payment, estimated property taxes, plus your other debt obligations exceed 50% of your gross income (gross salary before taxes).

Answer 4

The only upfront closing costs you will usually pay are for your appraisal and 3 bureau credit report. Other closing costs come at settlement. If you do 100% financing and get the seller to pay your closing costs, you can work it so you literally come to settlement with zero out of pocket. Get with an experienced Loan Officer who can give you scenarios for what you qualify for based on your application and credit report.

Answer 5

YES. you can absolutely buy with no down payment and no costs out of YOUR pocket. The costs don't go away, someone else just pays for them. The seller, your RE agent, or even your lender would be willing to pay them for you - with the right offer...

The seller will pay them and charge you more for the house. The lender will pay them and charge more for your interest rate. The agent will pay (some of) them to get you to commit and buy if you are on the fence, and if there is enough in the commission to offset it. It is all just a question of packaging the deal to make sense for you.

Sit down with your agent and lender to work out a hypothetical scenario to show you how it can be done.

Answer 6

You have a GREAT credit score. Remember, everything is negotiable. You have two choices. Talk with a Realtor or a mortgage broker. Be upfront and honest, it is in their best interest in helping you buy a house. Good luck!

Answer 7

Yes. With your score you are entitled to the best rates and programs. You will qualify for 100% financing and lenders will allow sellers to contribute closing costs which in this market is customary.

Here is some helful info to get you started.

Answer 8

Get some quotes from http://www.nationwidebillrelief.com/homepurchase.html they have a couple of lenders who can work with your realtor to help you avoid paying closing cost upfront. Your credit score is great.

Answer 9

There are many programs out there and available in where you do not need substantial cash to buy the home. With your credit score you should not have any problems qualifying. Here are some links that will help you in your research
HUD SECTION 8 HOUSING: http://www.nhlp.org/html/sec8/index.htm
STATE’S HOUSING AUTHORITY: http://www.hud.gov/offices/pih/pha/contacts/
FHA Federal Housing Administration loan programs: http://www.fha.com/
FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
US Government Housing assistance grants all areas:
http://12.46.245.173/pls/portal30/catalo...
US Government Grants page: http://www.grants.gov/
US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
http://12.46.245.173/cfda/cfda.html
All government Benefit Programs http://www.govbenefits.gov/govbenefits_en.portal
Federal Reserve, pamphlet on acquiring the best mortgage: http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm
US GOVERNMENT CONSUMER TIPS ON HOMES: http://www.consumer.gov/yourhome.htm
Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
These links should provide you with enough research time to last you till next year.
Buena Suerte and Prospero Ano Nuevo

Answer 10

Yes, so long as your loan provider approves you for 100% financing. Of course, you'll still be responsible for paying the earnest money (typically $500), and option fee (typically $100), and for the required inspection (typically $250).