Is it better to have a down payment to buy a house??

Question

My husband and I really want to buy a house but we don't have anything saved up for a down payment. And with the market the way it is now it would take us a long to to save even 5% of a down payment for a home. We were looking into 100% financing but we're not sure what to do. Any suggestions would be great. Thanks in advance!!!

Answer 1

I'm a mortgage broker from edmonton alberta. In alberta we have a superheated economy, so for most people by the time they save for a 5% down payment the type of property they can afford has changed, sometimes from a house to a condo. Traditionally the banks would charge you a higher rate for 100% financing than they would for a 5% down payment. But the good news is that this has changed. I work with a lender that will give you their best discounted rates with 100% financing. Of course you have to qualify for the rates with a 680 beacon score for both you and your husband. there's also the secondary lenders who will also give 100% financing with higher rates but lower qualifications.

If you live in Alberta canada I can find 100% financing for you.

you can contact me through my website http://www.albertamortgageguy.com

Answer 2

It helps as it will lower your monthly payments and give you built in equity. I would suggest that you speak to your local mortgage company's and banks and see how much you qualify for and the best interest rate you can get. Also ask about 1st time buyer loans, if this is the first time you've taken out a home loan, to see if your state offers them, these usually don't require a down payment, and make sure you get a copy of your credit score so you can better negotiate your interest rate and terms. You are legally allowed a copy of all three of your reports each year for free.

http://www.freecreditreport.com for your free credit reports

and the same as mentioned before about your work status, and current address and current status of your billing paying will help your to get into your dream home.

I recommend not buying a home that is at the top of what the lenders will suggest, make sure the monthly mortgage payment is something you can comfortably live with and not feel like you are always strapped for cash. In other words don't try to live beyond your means.

You can always climb the property ladder if need be.

Answer 3

There is alot of people losing their principle resident now because they bought with nothing down. Lets say you lose your job, well you lose the house too. The golden rule of thumb is to have 25% down and both be working. I bought a house by selling a business, thats how I got the down payment, then sold the house before it was paid for and made a profit and bought a bigger house, now I am selling again to downsize and going into a smaller house and that will still put money back into my pocket. If you have to buy, I would look for one of those tax sale properties and buy cheap, or one that the banks took back and want to sell cheap, that way if something happens with your fiances you can still sell it and hopefully not lose any money. Another rule of thumb is when you buy a home and lets say you paid 100.000 for it. Well if your paying it over 25 years usually you end up paying with interest about 300.000 for it when all is said and done. And start off small and work your way up, don't buy something you can't afford because you will just be wasting your time and money. Hope that helps you, good luck

Answer 4

It's better in some circumstances, like lowering your interest rates and avoiding extra charges such as mortgage insurance. But if you're a first time homebuyer there are programs out there for you that will help you get your first house with as little as 0-3% down.

Get in touch with a Realtor (they're a wealth of information) and do your research. You can start here: http://www.hud.gov/buying/comq.cfm

Answer 5

actually it can be done but you will only be able to do this if your credit score is really high and be gainfully employed with at least 1 year on your present job and at least 1 year at present address.you must pay your bills on time late payments lower your credit score and you must not have a lot of other debts.shop around and be careful of the choice you make do not get talked into something you cannot afford that is why so many people are losing their homes now.good luck.

Answer 6

i could say 20 according to cent of the fee of the abode, even nevertheless that's available to purchase a house with as low as 5 according to cent. some lenders will nevertheless lend ninety 5 according to cent, however the extra you could save for deposit the extra suitable off you would be.