Can we get a good deal through a goverment loan? We have no money down!!?

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My husband and I have VERY casually looked at houses to rent or purchase in the last 2 years. We came across one (by accident) for sale. It is a VERY good price. We walked through it and fell in love 🙂 Well now we are trying to find our way around this whole NEW world of buying a house (if we can). We have NO money down. But we have found that we qualify for a government loan through Western Ohio Mortgage Corporation. They do Fha, zero money down, etc….. We sent in the application today and are awaiting word. Now my question is has anyone done this before or can tell me more about it? Does it mean no money down really, what about closing costs. Will it effect us in different ways if we are approved for zero down, will we have a higher interest rate? What are some other things to consider? PLEASE HELP!! 🙂

3 Comments
  1. Reply
    Mommyhoney
    January 22, 2011 at 12:47 pm

    Eh. Closing costs….$ 6000. If you get a gift you should have gotten it by now cuz they will rake your gift person through the coals to assure you are not expected to pay it back. Nightmare. If you have savings, hang onto it.

  2. Reply
    Rick B
    January 22, 2011 at 1:40 pm

    Just because you don’t HAVE to put money down does not mean you SHOULD not put money down.

    You are in no position to buy a house. Since you have no savings, you are obviously spending more than you earn.

    You need to pay off any debt, save up 10% to 20% for a down payment, save another 3% to 5% for closing costs, AND have a cash emergency savings fund of 3 to 6 month’s expenses.

    Then you can start thinking about a house.

  3. Reply
    Landlord
    January 22, 2011 at 2:12 pm

    As stated, there are closing costs that you need cash for. FHA requires a 3.5% down payment. There are USDA loans, but that program will not have any more money until 2011.

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