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Hi ,

My husband and I recently got married and been living at an apartment for the past 6 months and we still have another 6 to go. We have been thinking to buy our first home. However, we don't have a down payment saved and it would take us a while to save.

I am wondering if buying a house with no down payment or very little down payment is at all possible ?

Thanks.

adonis · Posted: Wed Jan 25, 2012 11:22 pm Post subject:

Hi kt,

It is always better to put a down payment when you want to buy a house. You may get a mortgage without a down payment or no down payment but in that case, you will have to go for a PMI.

sabrinatoss · Posted: Thu Jan 26, 2012 1:54 am Post subject: Hello kt393

No, you cannot get a mortgage with 0 down with a credit score that low.
Sorry to tell...

Idea

gmakerley · Posted: Thu Feb 02, 2012 1:31 pm Post subject:

With a credit score that low??? Where did you find a credit score in these posts, Sabrina?

Certainly, there will be limitations on borrowers with low scores, but there are various programs around the nation that allow even those borrowers who are credit score-challenged to obtain mortgages with little or no money down.

Guest

i have an excellent credit score but don't have enough down payment. my money will be enough for 3% for a 250K home loan, no available funds for closing costs. will i still get approved?

adonis · Posted: Tue Feb 07, 2012 11:52 pm Post subject:

Hi confusedRN,

If you don't have enough down payment, you can go for the option of PMI in order to get qualified for a loan. However, you need to have the closing costs ready when you close your loan. Unless you do so, it will be difficult for you to qualify for a loan. However, you can ask the lender to include the closing costs in your loan. This may make your payments high.

gmakerley · Posted: Wed Feb 08, 2012 12:57 pm Post subject:

Lacking funds for closing is not something that can be covered by a lender financing the costs - it's simply not done.

What a borrower can do, however, is negotiate with the seller of the property in question, and attempt to obtain as large a concession from that seller. The concession would be to pay as much as is allowable of the related costs of closing. Depending on the product, it could be as little as 3% of the purchase price of the home or as much as 6%.

Lenders won't even begin to consider financing closing costs on a purchase.

petekolackovsky · Posted: Mon Feb 13, 2012 10:49 am Post subject:

Hey kt393,

It's always better to pay a down payment (you can find loans anywhere from 5%- 20% down) however it's possible to find a mortgage where you don't need a down payment. My advice would be to rebuild your credit score first, then start looking. Here are a few tips to rebuild your credit:

- spend less on your credit cards; regardless of whether you pay them or not, lenders generally don't like high balances. Stay at or under 30% of your spending limit.

- Pay every thing on time (of course!)

- Retain old credit for a matured credit history

The more you put down, the less your closing balance will be since your interest won't be able to build up during the shorter repayment period.

Hope this helped you!

jveenstra · Posted: Mon Feb 13, 2012 11:57 am Post subject: Low Down Payment

Zero down payment ius required for VA mortgages and USDA mortgages.
For VA mortgages you must be a veteran with mortgage eligibility.
With USDA loans, there are income limits and the property must be located in an area that is eligible for USDA loans.

The minimum down payment for an FHA mortgage is 3.50% and that can be a gift from a relative.

The minimum down payment for a conventional Fannie Mae mortgage is 3.00%.

Closing costs can be from the seller if they agree in the contract.

The Leneder can also raise the rate in order to pay for some of the closing costs.

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