We're trying to sell our home and trying to determine "how low we can go" - my husband insists we need to have 10 - 20% down for the new home, but I've seen and heard a lot of "no down payment" options out there.
2007-01-20 10:27:02 · 9 answers · asked by ScarletArt 2 in Business & Finance ➔ Renting & Real Estate
PMI sucks, but you have many options that Can eliminate PMI. I've bought 2 houses with no down payment and have had no problem with either of them. Just make sure you talk to a qualified person to do you r loan to make sure you are hearing ALL of the options available. Some brokers are not aware or do not do certain types of loans. Definitely don't take the advice from someone who is not in the business and really may not know all the facts about mortgages. The government has a lot of regulations concerning the more aggressive types of loans. They are put in place to prevent predatory lending. Those loan programs are put in place to help people in your situation. If it's the right scenario to do 100%, do it. It works for a lot of people. Myself included!
Good Luck!
2007-01-26 08:09:44 · answer #1 · answered by nate p 2 · 1⤊ 0⤋
I think it's insulting to ask people to contribute to y our down payment on a house. But then if I had to give a gift to someone and that was my only option, I wouldn't slight them. First off, if you've been living together that long, most people know you probably have what you need...give them enough credit to figure it out. If you really want cash, I'm sure your parents or trusted others can "hint" that is what you would like to receive in lieu of a tangible gift. Then you can direct the money wherever you want. Also, if you can't afford a house on your own, a down payment isn't magically going to make you be able to afford a home. It's just going to help a little. But whatever you do, good luck.
2016-05-24 02:04:10 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Yes, yes, yes. Twice.
I have purchased two homes with no money down and had no problem getting the loan, purchasing the home, or making the payments.
Lenders are doing a huge business in 100% loans. So long as your credit score is good, the payment (principle, interest, taxes, and insurance) will use no more than 38% of your monthly income, and you do not have a whole bunch of other debts, then you should have no problem getting the loan.
I'm confused why the seller would care about this. It's none of the seller's business.
2007-01-20 16:10:14 · answer #3 · answered by CJKatl 4 · 0⤊ 0⤋
PMI is deductible now on your taxes if you buy in 2007. Not before.
There are also loan products available that don't have PMI but they might have a higher rate to offset the absence of it. But your payment could actually be lower with a comparison of with pmi and without. Have your bank or lender do a comparison.
FNMA does 100% financing and rates are decent. Any lender should have FNMA available. 95% will have better rates but if you don't have it don't sweat it. Also, have the lender tell you what their financing source will allow in Seller paid closing costs.
Go to a lender first and get approved. Your realtor will know you are serious and get the ball rolling for you.
Good Luck
2007-01-27 00:09:22 · answer #4 · answered by Lee P 2 · 0⤊ 0⤋
Yes I purchased with no down payment. The sellers gave 2% towards closing cost and I still walked away with money. Now I am going to pay my house off within 8-12 years with a new interest cancellation software.
2007-01-20 11:03:11 · answer #5 · answered by mortgagefreedom@sbcglobal.net 1 · 0⤊ 1⤋
Your husband is right...If you get into "No Down Payment" loan, you will be sorry. You have to pay "PMI" which is Private mortgage insurance. They are $45 per every $100000.00 you are borrowing. If it is FHA loan, you stuck with at least 5 years to make that Non-Tax deductible insurance.
2007-01-24 15:09:03 · answer #6 · answered by Mimi 4 · 1⤊ 0⤋
yes you can do it. we are trying to right now. THere is one problem that we are experiencing is that people don't want to sell to us because they consider us a risk becauase we are doing 100 percent financing. they think they are going to take their home off the market and we may not get the loan. they rather see someone with money down.
2007-01-20 10:32:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Try going FHA. I got into my house for a total of $1,500 with a decent interest rate. I always feel suspicious with the lenders that will allow no downpayment. You have to wonder if you're going to get taken advantage of when it comes to the interest.
2007-01-28 06:53:28 · answer #8 · answered by Christy 3 · 0⤊ 0⤋
get a good realtor to help you through the offer process. most of my clients do 100% and i have yet to fail to get one in a home.
2007-01-20 13:27:56 · answer #9 · answered by daniel r 4 · 0⤊ 0⤋