can I get a loan for a down payment for a new house? If yes where and how can I got about doing this?

Answer 1

The answer to this question is: yes, no and maybe.

The no and maybe first: NO, you cannot borrow unsecured funds, and (the maybe) if you have a payment for the secured borrowed funds, it must fit within your debt ratio.

Yes you can borrow for your down payment, IF you borrow, securing the loan with an asset (i.e. 401k, other real estate, pawned wedding ring, etc) And yes you can borrow for your down payment using secondary financing like 80/20, 80/10/10, 80/15/5, or any agency approved second mortgage: https://www.efanniemae.com/sf/mortgageproducts/fixed/commseconds.jsp

Almost every major city and every state have a community development program offering some type of buyer assistance, many with loans that are not re-payable until the property is no longer owner occupied or sold.

There are easy obtainable 100% conventional loans with low interest rates and no or low PMI. See your mortgage broker and ask about MyCommunity, Flex 100, HomePossible, and FreddieMac100.

You also can inquire about grants from non-profits (church), employers, state or local organizations.

Neighbor Assistance Corporation of America ( http://www.NACA.com ) is offering 100% @ 5% , no closing costs, credit scores are not a factor.

Answer 2

Conventional mortgages require you to put down 20% in "own funds." This means that you cannot borrow the money and will generally have to provide proof of "seasoned funds" through 3 or 4 months worth of bank statements. Most lenders will allow you to use gifted funds but will require the person giving you the gift to sign a sworn gift statement attesting to the fact that it is a gift and will not be repaid.

There are loan programs that will provide up to 100% financing but due to the current problems in the real estate markets those programs are drying up faster than spilled water in Death Valley.

The best way to home ownership with limited funds would be through the FHA loan program. The normal down payment requirement is only 3%. FHA loans have mortgage insurance for the first few years but that can be rolled into the loan as a single premium payment instead of being paid monthly as PMI is.

If you can't swing 3% down you should work on saving money towards a down payment before you think about buying a home. Buying with the few 100% plans available today will cost you dearly in higher interest rates and PMI payments. If your finances are so tight that you can't set aside money for a down payment you'll likely wind up in foreclosure the first time you hit some sort of minor financial emergency such as a major car repair or temporary job loss.

The only "grant" program I've ever seen is one of the buyer's funds programs such as run by Nehemiah. The seller actually gifts you the down payment through the foundation. It sounds a bit shady at first reading but it's entirely legitimate; I've sold several places in depressed markets and gotten close to my asking price once the dust settled. Any realtor worth their salt is familiar with the program and some specialize in it.

Answer 3

yes, there are 100% loans available, FHA, etc.

However, think before you do this. You have no money and you are now taking on a major responsiblity. If you have been reading the posts here, you know that there are a lot of people that did the same thing you are planning to do and are now in deep trouble.

I would highly recommend that you buy a house that you can afford. Under FHA, they will allow your total housing cost to be up to 36% of your gross income. However, I would only do up to 25% MAX and start saving money.

Don't become house poor. Don't live pay check to pay check. This will ONLY GET YOU IN TROUBLE. One or two bad months and you will be back here asking about short sales, and the like.

Answer 4

Don't listen to people who are misguided when they say 100% financing is "drying up". 100% financing is still there and always will be. The problems in the market are not due to 100% financing on a fixed rate, it's due to adjustable rate mortgages. Fannie Mae and Freddie Mac have always and will continue to offer zero down mortgages for qualified buyers. See a licensed, experienced broker who understands the market. What you will get here is people giving you answers driven by nothing more than media misinformation.

Answer 5

There are 100% mortgage loans where you don't have to put up anything. check with a mortgage broker.

And there are grants for down payment programs. Run a search online for them.