No Money Down?

[terrymac]

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

[mamahearts]

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.

[Anonymous]

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

[terrymac]

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.

[Anonymous]

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.

[Anonymous]

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...

[terrymac]

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.

[ShanetheMortgageMan]

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.

[terrymac]

Thanks Shane,

I will definitely take a look at that link.

[Anonymous]

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