My husband and I would love to buy a home but we have no money for a downpayment and can not afford to pay more then $600 a month including the insurance on the house. Is there any way we could do this? And if so how? We'd really like to have a nice place to raise our children.(Not that the place we live now isn't nice just not ours were renters) Is there any way we can do this? we pay every bill on time including our rent.
2007-02-20 03:51:51 · 12 answers · asked by Kellie R 4 in Business & Finance ➔ Renting & Real Estate
Yes but it is not a good way to go. Try getting a loan for the down payment with a broker who specializes in home loans. The reason I say not a good idea is because your rate will either be higher than it has to be or you will be in one of those adjustable rate deals where 3-5 years down the road, you may be very shocked to see the house payment skyrocket. Check with multiple loan brokers. They work with different lenders and usually can find a decent deal if all is in order. Banks are not as flexible for risk taking.
2007-02-20 03:58:26 · answer #1 · answered by Joseph H 4 · 0⤊ 0⤋
Yes you can, but as others have pointed out, you will be borrowing more money and you will have to pay a higher rate of interest since it's a riskier loan for the lender.
You will have to be sharp and check around because you want really low monthly payments (more on this below). The loan broker may offer you reverse mortgages or other deals that keep your payments artificially low for a year or two but then they go up fast, or your balance due keeps increasing because you are not paying the full rate of interest that falls due.
Unless you live in an unusually poor area, $600/month is unrealistic, because you have to include real estate taxes, as well as at least part of the principal and interest and insurance.
Keep in mind that mortgage interest is tax-deductible, meaning your annual income taxes will probably be less than they are now, leaving you more money, which you can spend on your monthly payments.
You should look into Federally-subsidized loan programs if you are on low income, or are first-time buyers.
2007-02-20 04:06:04 · answer #2 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
There is a way to buy a home with out a down payment and closing costs. If you buy a home without a down payment, you will have terribly high intrest which will make your payment skyrocket. You will still have to have some closing costs. We have a $115,000 home at 6% intrest and pay $868.00 per month. We put $5,000 down and $4,500 in closing costs. That is why we got a good intrest rate. That includes insurance and taxes. If you can't afford more than $600 then you will not be able to pay more than about 80,000, and you are probably in a nicer home now. I would wait until you are much more financially sound. You also have to realize that on top of the payment, you are then responsible for all repairs, which can add up very quickly.
2007-02-20 03:56:35 · answer #3 · answered by Barbara C 6 · 1⤊ 0⤋
In the uk you can buy a house without a downpayment but you need to pay a lot more than $600 a month, the uk average for a house without a deposit would be about $1600 a month(not including insurance). If you can get a house for $600 including insurance, I want to move to where you are!!
2007-02-20 03:59:33 · answer #4 · answered by brien123 4 · 0⤊ 0⤋
Yes, you can if you have good credit and a reliable salary, but you will most likely pay a very high interest rate. This site has some helpful information on obtaining no money down loans. Call around & do research on the internet...there are many mortgage companies that can help you. Good luck!
http://loan.divinfo.com
2007-02-20 05:39:13 · answer #5 · answered by Reenie 3 · 0⤊ 0⤋
Yes you can. My ex and I bought our first house with no money down. the thing to do is talk to a bank or a real estate person and see about getting pre approved, the are programs for first time home buyers also. A real estate agent should know about these and also any bank....
2007-02-20 03:56:56 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Yes, if you try very hard you can. you and your husband should try to find out about "Habitat for Humanity" I have friends that got one and they are like only around $450 a month. Allyou need is a job.
Best wiehes hopes everything goes good for you.
2007-02-20 03:59:01 · answer #7 · answered by Twister 4 · 0⤊ 0⤋
yes i'm doing it this friday w/ $0 down. I am paying the closing cost, but you can finance that too if you want.
The more you put down the better interest rate you will have. I'm using wells fargo, of course i know the guy whos giving me the loan. So i'm not sure if they do this for everybody. My interest rate is 6.5%.
2007-02-20 03:55:02 · answer #8 · answered by Anonymous · 2⤊ 1⤋
you can do it if you have great credit. i don't know anywhere in the country where you can pay PITI (principal, interest, taxes, insurance) for $600.00 a month.
keep renting and save money. the market hasn't bottomed yet.
2007-02-20 03:57:06 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Yes there is. Make sure the house you want says No Money down on the sign or you probably have to pay move up front.
2007-02-20 03:55:22 · answer #10 · answered by DDR QUEEN 3 · 0⤊ 3⤋