2007-02-13 06:45:59 · 13 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes - absolutely - even with bad credit. However with bad credit you'll have to pay a higher interest rate.
2007-02-13 06:50:51 · answer #1 · answered by Sven B 6 · 0⤊ 0⤋
Probably, but it's not a good idea. First, you'll pay a premium interest rate, since the lender wants a good assurance that they will make some money on a transaction that's riskier than normal. Second, if the market value drops because the housing market bubble bursts in your area, you'll be stuck with a mortgage that is greater than the value of the house.
A couple of years ago when the market was hot, lenders were making more loans like this, betting that the house would appreciate in value enough that the lenders would have some equity in the place. Now, that's not happening much, I hear. If you have stellar credit, you might find a lender that will work with you. But get your wallet out - it will cost you. IMNSHO, I'd start saving money until I had at least 10% of the purchase price.
2007-02-13 06:53:02 · answer #2 · answered by Ralfcoder 7 · 0⤊ 0⤋
Yes, there are some First Time Home Buyer Programs out there. 100% financing is not uncommon at all, however you may have to pay closing costs. Closing cost will depend on the Sales Price, some items to consider: Title & Escrow and/or Attorney Fees, Taxes, Insurance, recording, Doc. Prep. Termite Insp. and or Home Inspection.
There are Mortgage Brokers that know of all the programs and direct Lenders. Shop around and once you have found your best deal put in an application. Try to get pre-qualified that will help you determine what price range to look for in housing. Remember if you are getting 100% financing it most likely will be required that in addition to Principal and Interest you pay the lender additional money each month to cover Taxes and Insurance. In other words you pay Taxes and Insurance up front through escrow. Then each month when you make your loan payment, you also pay the Lender an allowance so that they can pay your Taxes and Insurance when they become due, its like a Cookie Jar.
2007-02-13 07:37:32 · answer #3 · answered by Plain Jane 3 · 0⤊ 0⤋
The simple answer to your question is "yes". Many 'zero down' programs exist in the industry, from 80/20 programs (a combined first and second mortgage, for 80% and 20% of the sales price, respectively) to true 100% first mortgage loans (often, intended for first time homebuyers). As the industry gets more and more competitive, these have been expanded to include not only clean credit but also 'not so clean' credit.
However, one warning I always gave borrowers was to make sure they really, really liked the home they were going to finance this way. Because it will be difficult to recoup your investment without a significant amount of time in the home AND realization of better-than-average appreciation sustained in the marketplace.
Consider that after the fees associated with selling a home, you'll be upside down unless there is a very real and sizeable increase in value when it comes time to sell...and if you can't leverage that you're very upside down on your investment from the day you move in.
Hope this helps. Best to you
2007-02-13 06:58:17 · answer #4 · answered by Timothy W 5 · 0⤊ 0⤋
Yes. There are many lenders who will do 100% financing, even 103% to help with closing cost. There are also the option of doing two loans, 80% and 20%.
Here is website where you can submit mortgage questions, if you have more that you would like to have answered by a mortgage professional, it is not a sales oriented site, just informational.
2007-02-13 11:42:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Certainly, banks love this because you just pay more interest! You may need some money depending on closing costs of the house. But you may be able to roll these into the selling price of the house and have the seller pay them.
2007-02-13 06:48:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
After you purchase your home, you may be interested in this new program. It works well with a 30 year mortgage. I am currently using a HELOC with a new software program that helps build equity fast, and will payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. E-mail me if interested
2007-02-13 08:30:41 · answer #7 · answered by marshae 1 · 0⤊ 0⤋
you may desire to construct a credit historic previous. start to buying some thing via credit, and be on time to make your money. I advise you circulate to a genuine assets place and get the advice at what would be extra acceptable for you. in case you have the money, then circulate forward and purchase it at as quickly as.
2016-09-29 01:42:32 · answer #8 · answered by schenecker 4 · 0⤊ 0⤋
Lets be clear here.
You are not "buying" a house.
You are asking how to become a slave to a bank for the next 30 plus years.
It is better to get 20% down to avoid PMI and to get a 15y fixed.
I suggest checking out:
http://www.daveramsey.com/
Listen to his show if you can, he streams the audio for free if you aren't in an area that he broadcasts in.
Good luck
2007-02-13 06:56:17 · answer #9 · answered by zaphodsclone 7 · 0⤊ 1⤋
yes I did and I didn't even have good credit history
2007-02-13 06:49:10 · answer #10 · answered by Tori L 2 · 0⤊ 0⤋