I found the house of my dreams but no down payment?

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I found the house of my dreams, but have no money saved for a downpayment or the repairs needed. I am financially stable, I simply don’t have money for a downpayment. Are 100% mortgages attainable anymore? Or if a house is $ 100K can you get a loan for $ 110K to make the much needed repairs? What is the minimum downpayment now days?
I would be a first time home owner.

  1. Reply
    May 14, 2011 at 11:48 pm

    You may qualify for an FHA mortgage.
    As of today they require 4% down.
    Conventional mortgages are 10% minimum.
    Do not do any variable rates or ARMS;
    interest rates are about to go up,
    and the interest on your mortgage could double.
    Stick to 15 or 30 year fixed – please – no gimmicks – not even points.
    Start with your local credit union.
    Make an appointment today.
    If you have any credit card debt – it needs to be paid off.
    Revolving credit will directly reduce the amount of monthly payment you will qualify for.

  2. Reply
    May 15, 2011 at 12:04 am

    Sounds like you’re in a pretty tough situation. The only 100% loans I’m aware of are VA loans and some rural housing loans from the USDA. FHA offers a loan program called a 203b that allows you to take additional funds from the loan to fix up the property. I’d start looking into those loans.

    Another option would be to buy the home with private money. You’d really have to sweet talk the investor because most investors want to know you have skin in the game (money). Since you don’t have any money into the transaction, a private lender wouldn’t be likely to lend to you, but you might as well take a shot. If the home is worth substantially more than you are buying it for, a lender may be willing to look at it. It’s not likely, but you might as well try.

  3. Reply
    May 15, 2011 at 12:19 am

    No, I’m sorry but the lowest down payment for an investment (rental) property will be 20% (in some cases 10%). PMI companies are no longer willing to provide mortgage insurance on rentals hence the need for 20% down. If you have enough equity in your home you may be able to pull enough cash out to cover the down payment. Since you are a 1st time home buyer, you should probably check out some sites about purchasing homes.

    I hope I helped!

  4. Reply
    Doctor Deth
    May 15, 2011 at 12:53 am

    1-you would still need 3-6% cash up front for closing costs
    2-no one lends more than the agreed upon sale price – no extra money for repairs
    3-very doubtful on zero down also

    figure 10% cash up front for everything – don;t forget cost of moving

  5. Reply
    Blonde Engineer Girl
    May 15, 2011 at 1:41 am

    I just closed on a home and I got an FHA mortgage. I needed 3.5% down and closing costs (about $ 10,000 all together for a $ 125,000 house)

    There are 100% financed mortgages, but the interest rate is higher, not THAT much higher though.

    FHA does have a rehab mortgage. This is a loan that they give you for the price of the house, plus some extra money to fix it up (all included in the mortgage). There are certain requirements for both of these loans and it would be best to talk to a lender.

  6. Reply
    anonomous bob
    May 15, 2011 at 2:12 am

    Dont do it. You should have 20 percent down, worst case 10 percent. We are in our current economic condition for a number of reasons, one of them being the amount of people who took out 100 percent mortgages. They have no equity in their home and chances are now their home isn’t worth as much as it was when they bought it. My suggestion…save away in a “high” interest savings account. The rates aren’t the best right now but put that money away until you get close to 20 percent. The truth may hurt, but it’s alot better than the potential consequences. Good Luck!

  7. Reply
    Carmen Jones
    May 15, 2011 at 2:42 am

    My names is Carmen Jones. I saw your question in yahoo answer .I decided to refer you to this God fearing man, because i have been SCAMMED twice by this fake lenders. When i had bad credit, it was this man that gave me $ 45,000. you can get to him via Email: mrben.rume@yahoo.com. Tell him Carmen Jones referred you to him that he gave her a loan sometime ago.
    Carmen Jones

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