Can I Buy A House With Little Or No Money Down?

Question

I have about $1000 at the most to put as down payment.
Since my income is limited, I can afford payments of 400-450 per month. (not including tax & insurance)
Amortized at 7% that's about a 64K house.
I live in the Midwest, so there are modest houses about that price.
Any suggestions on how to do this, or is continuing renting my best option?

OK, apparently I need to add this request.
I am merely asking for advice in this forum.
Please do not send me solicitations for your personal services.
Thank You...

Answer 1

you should talk to your lender about a FHA Loan. They can help you out with exactly what you want. Also if you are a veteran you can get a VA loan. They have huge benefits that you are able to get in with little or no money and save your $1000 for closing costs. There are also classes, check in your area, that you can take and then the government helps you with a down payment and works with you to reduce your payments. One more thing you can check into is rent to own, that way your paying to own the house you are living in if you cant get financing, the seller will usually hold financing. check for seller financing or help with closing costs as well for regular homes. And try to stay away from mortgage companies, especially ones online. Try going through your bank first or other banks in the area. It will also save you money.l

Answer 2

I don't know about the MIdwest but her in New England, North of Boston MA to be more specific the answer is no. We have many foreclosed homes on the market now and more are added each day which has made the mortgage companies and banks have more restrictions on what you can qualify for and higher down payments.

If you make 60k a year and have 60k in cash to put down you can only qualify for 210k in a mortgage which is less that it was 3 yrs ago.

If you can buy a home and afford it without having to eat noodles every night than go for it but stay away from adjustable rate mortgages and interest only loans. These are the mortgages that are defaulting right now.

I wish we lived in the midwest, a house for close to 300k around here is one that needs some work done to it.

Good luck and I hope that I helped a little!

Answer 3

You may be better off renting and saving your money for a while. A $1,000 down payment is not enough even to pay the closing costs on a modest house. You may be able to convince a seller to finance the amount you cannot finance with a first mortgage, but you would be incurring mortgage insurance fees and a high interest rate. A lender may not be willing to offer a first mortgage with such a small down payment. The slump in housing prices and the huge number of foreclosures taking place because of the easy lending practices of the past few years have caused lenders to be much more careful about financing sub-prime loans. Yours would be about as sub-prime as they come until you can muster a larger down payment.

Answer 4

Continuing to rent might be your only option until you can get some more money saved up. $1000 isn't likely to cover closing costs, so you'd need more than that to have anything at all to put down.

And you are only looking at the principal and interest part of the payment. There will also be real estate taxes, insurance, and if you don't have at least 20% down, something called PMI - those would likely add up to another $150 a month or more.

Over the past several years, some unscrupulous lenders have given mortgages to people who couldn't really pay for them long-term - now many of these people have lost their homes to foreclosure, and lending rules have tightened down considerably. Stay away from ARM (adjustable rate mortgages) - you have a relatively low payment for the first few years, then it skyrockets.

Answer 5

What about the closing costs? I know the down payment can be put to the mortgage if its an fha loan.

Answer 6

FHA (First Time Homebuyers) is for people just like yourself. Call a realtor in the phone book and ask them to help you and explain your situation. That is their job. You can even have your closing costs financed if need be. Good luck! I hope you find a great place.

Answer 7

Maybe an FHA loan, but you'd have to have good credit. Your down payment wouldn't come close to covering closing costs though.
I'd continue saving

Answer 8

yes, you may be able to buy a house worth $45k, to be on the safe side.

Answer 9

if ur credit is good