Who still offers 0 Down Mortgage

Anonymous · ‎03-30-2009

Ok...I have a small house 2/1 and my family is growing. Wife, son, myself and soon to be another on the way. My question is who still offers "0" down for a new mortgage. We have rented our 2/1 and our mortgage is covered. We need something bigger but not is a complete rush. Staying with my father for now and he is happy to have us. If anyone could give me banks, online etc of places to check out that would be great. I know we need money for a down payment but our 2/1 will not sell in this market and we even tried at below cost. Thanks

Anonymous · ‎03-30-2009

USDA does, but you have to be in an approved rural area. Also, I am not sure you can do a second home with them? Otherwise the minimum is 3.5% with FHA and unless you have alot of equity in the other house and have had rental contracts going back 12 months you can;t use the rental income to qualify so you would have to qualify for both mortgages on your income. I think at least.

Anonymous · ‎03-30-2009

Well the 2/1 is in my wifes name and our renters moved in 12/08. So a year is still some time off. I am starting to think I better save for a down payment OR take out a loan at the credit union to pay for it. Errrrrrrrr....Just stinks to see people buying a huge house for what I paid for my little 2/1. Go figure.

Anonymous · ‎03-30-2009

they will not accept a loan as a down payment (FYI). The funds have to be yours, not borrowed (except in the case of a gift from a relatative) Also, taking out a lona would just put more pressure on your DTI and creat a new account which will make an underwriter jumpy.

Anonymous · ‎03-30-2009

True very true...

WannaHouse · ‎03-31-2009

Any chance you can add on to your 2/1 house? It just might be the ticket for your situation.

Kathy

We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Anonymous · ‎03-31-2009

No. I owe about 190K now. The area was going as high as 315K!!! Now they wont sell for 170K. So I am upside down and adding on will only make it worse!!! I thought about it but why add on if I will not get the money back. And to think that the addition to the home with my mortgage already in place will cost me more than a bigger house down the road is crazy. So say a good addition cost 30-40K then Im up to about 220-230K. I could be a nice 4/2 with a pool for 240K. Nice idea though...

Anonymous · ‎04-01-2009

USDA could still be an option. The requirement is that you don't currently own an "adequate" home.

It could still be dicey but I'd suggest talking to someone without automatically discarding the idea.

Anonymous · ‎04-01-2009

Before you discard the idea of adding on to the current home you should ask an Appraiser or a Real Estate Agent about what the addition would do to your home value.

Have them take a look at what the houses with the new square footage and room counts are selling for in the area.

I feel you may have a pleasant surprise when you exceed 2 bedrooms.

Either decision you make will cost you more money and increase your monthly expenses and if you currently are unable to save money due to your obligations I would reconsider whether it is a move you should make. Rental Income is something you should not be reliant upon. Several renter's have defaulted on payments and if yours do then where will that leave you?

Message Edited by Greg_Phillips on 04-01-2009 09:58 AM

Anonymous · ‎04-01-2009

First adding on is not an option. Almost all homes in area are 2/1 or duplex 2/1. Even those 3/2 in the area are very low so that option is out.

The surprise would be that I added on to the house and lost even more money in the end.

Second who said they could not afford the payments??? Not me. I can afford the payment easily. But family has out grown the house we cant sell it for what we owe. But all these FIRST TIME HOME OWNERS can walk in and buy a 4/2 and pay the same or a little more with a great rate and still pay less. THAT IS CRAP! And Countrywide will not do a refi because the value of the home is so low.

So I ask what would you do? I say get a bigger house no matter what. Then if renters were to bail (If you do a good background check etc you will not have a problem with renters) on you and things got hard let the smaller home GO!!! Thats reality. I cant sit by and watch people buying a first home that is bigger and better while I sit in a small home waiting for the market to change. By then the bigger homes will be out of reach.