topic Re: No Money Down? in Mortgage Loans

No Money Down?

terrymac — Thu, 27 Oct 2011 17:54:25 GMT

Hi My Ficos,

Hoping someone can offer some advice or info. Are banks and lending companies offering mortgages with no money down? I am hoping to begin my search for a home next year, so cleaning up my credit and saving my money. Even though I am in the process of saving for a possible down payment, was wondering if any companies are still offering loans with no down payments. Any insight would be greatly appreciated.

Thank you

Re: No Money Down?

mamahearts — Thu, 27 Oct 2011 18:35:58 GMT

Not sure of any banks, but if you're a first time homebuyer, your state or county may offer some down payment/closing cost assistance. Check into local resources first.

Re: No Money Down?

Anonymous — Thu, 27 Oct 2011 19:02:33 GMT

Is the area you're looking into eligible for the USDA loan?

Re: No Money Down?

terrymac — Thu, 27 Oct 2011 19:11:24 GMT

Thanks MamaHearts and altonc27,

I will be a first time homebuyer and I will be relocating. I am looking in the Gwinnett County of GA. Not sure if USDAA will apply, but will check it out. As stated, am saving for a down payment, but if can save the money for closing and about 3 months mortgage payments in reserve would prefer to do that.

Also, another question. Just bought a car in August and I know I have heard I should probably wait a year to establish good payment history, would 6 months be OK? Or should I should wait the year out? I have no outstanding debts and have paid all collections. I do have a paid judgment from 2008 that hopefully should be falling off soon and the only inquiries I have are from August from the car. Would really like to start thinking about purchasing a home in March the earliest if possible. Tired of sleeping on someone's couch.

Thanks so much.

Re: No Money Down?

Anonymous — Thu, 27 Oct 2011 22:16:56 GMT

USDA & VA loan offer 100% financing. They're the only ones I know of. With that being said, you can purchase a house with very little out of pocket.

My lender says he can get some to close with as little as $500 out of pocket. We have a FHA loan and are using the 1st home buyer's down payment assistance which covers 2.5% of the 3.5% down payment we need. We have our sellers giving us $7k/ the full 6% (max. FHA will alow) in closing costs. Lender told me whatever is leftover can be used to lower our mortgage amount. I also get 0.25% lower interest rate with Ohio's Hero's program.

We do have to pay for our inspection ($300) & the appraisal ($300-$400, I think).

Im going to talk to my LO tomorrow about just how much we'll need total to close. We're looking to close with very little out of pocket.

As far as your car goes, I think that depends on how many other tradelines you have? Definitely check out the 1st time home buyer programs in Georgia and see what you'll qualify for.

Re: No Money Down?

Anonymous — Sat, 29 Oct 2011 01:34:00 GMT

Yep, reaffirmed with my LO today. The only costs we are paying out of pocket for is the appraisal, inspection, and possibly my old collection. Dont ask me how...

Re: No Money Down?

terrymac — Sat, 29 Oct 2011 03:15:56 GMT

Thanks VintageGal,

And good luck with your home purchase. I am in the process of saving for something next year, so am gathering all my facts and info to talk to a LO next Feb or March. That should give me at least 6 months with the car.

Re: No Money Down?

ShanetheMortgageMan — Sun, 30 Oct 2011 07:48:34 GMT

http://www.dca.ga.gov/housing/Homeownership/programs/GeorgiaDream.asp is big in Georgia for down payment assistance, it can help out with FHA's 3.5% down payment requirement.

Re: No Money Down?

terrymac — Sun, 30 Oct 2011 20:44:45 GMT

Thanks Shane,

I will definitely take a look at that link.

Re: No Money Down?

Anonymous — Sun, 30 Oct 2011 23:26:39 GMT

has anyone used this program before, what are the hous price limitations and actually how hard is it to get this assistance?

Re: No Money Down?

Anonymous — Mon, 31 Oct 2011 00:38:25 GMT

@Anonymous wrote:
has anyone used this program before, what are the hous price limitations and actually how hard is it to get this assistance?

Im using Ohio's assistance, but Im sure they all pretty much work the same. Are you buying in Georgia? If you click on the actual program your interested in from the link provided by Shane it will tell you the house price limit. Example: click on "Georgia Dream 30 Year First Mortagage". It will take you to a pdf that says purchase price of no more than $250,000.

As long as you qualify, I think its pretty easy to get the assistance. My LO just had me fill out the applications for the programs Im applying for when I filled out my other loan documents. He's already included them in with my loan.

Re: No Money Down?

Anonymous — Mon, 31 Oct 2011 00:41:38 GMT

@Anonymous wrote:
@Anonymous wrote:
has anyone used this program before, what are the hous price limitations and actually how hard is it to get this assistance?
Im using Ohio's assistance, but Im sure they all pretty much work the same. Are you buying in Georgia? If you click on the actual program your interested in from the link provided by Shane it will tell you the house price limit. Example: click on "Georgia Dream 30 Year First Mortagage". It will take you to a pdf that says purchase price of no more than $250,000.

As long as you qualify, I think its pretty easy to get the assistance. My LO just had me fill out the applications for the programs Im applying for when I filled out my other loan documents. He's already included them in with my loan.

Ugh I cant edit my post and copy & paste messed up my sentence. To finish my sentence: It takes you to a PDF that says purchase price of no more than $250,000.

Re: No Money Down?

Anonymous — Thu, 01 Dec 2011 18:43:43 GMT

I was told today there was no grant $ available for first time home buyer down payment assistance in my area. I didn't think to ask if it is a program that gets funded after the new year since I won't close until after that point anyways. Also didn't think to ask how quick the process is.

I know with a USDA Direct loan my out of pocket will be little to none (currently just anticipating the homeowner's insurance) but it would have been nice to have that taken care of and not financed in the mortgage. My realtor promises he can have that financed in (possibly paid by seller) but that lowers my purchase amount.

If anyone has any other suggestions please let me know. I live in New York.

Re: No Money Down?

notmyj — Thu, 01 Dec 2011 19:49:40 GMT

Im doing a USDA garanteed mortgage as I was tryingto keep out of pocket expenses to a minimum. All said and done, I should only have to put out $1000-$1500. I'm in underwriting right now, so we will see how it goes at the closing table. Hopefully in a few weeks.

Re: No Money Down?

Anonymous — Fri, 02 Dec 2011 17:41:49 GMT

I got a USDA loan and only payed the $275 for an inspection, the seller paid all closing costs and I walked out of closing with a check for $46 so my total OOP was really only about $225.

Re: No Money Down?

IOBA — Fri, 02 Dec 2011 18:22:01 GMT

I am cringing - can you see it?

I had several lenders tell me that I qualified for the no money down loans. Besides paying for appraisal and maybe inspection, I would need to bring about 24k to the closing table to cover "fees" on a 300k loan and I would be financed 100% of the purchase price. Yeah, right...no money down huh??

I am not going that route...

Call and ask when new funding comes in. Keep looking!