I originally responded to your question but then read some very good answers on here. I agree with Debbie and Mack.
I am a consumer, not an agent and know the risks of buying when I should wait instead. Your statement about not having much money to put down says it all. We all want the condo or house but the reality is if you can't put at least 20% down then wait. I check the news and though housing prices are creeping up people seem to think it is mostly investers buying the property and so prices might go down a little as well. I know this isn't the answer you want to read but....This person Debbie and Mack are correct.
I don't understand my fellow agents who jump in and tell someone who says they don't have any money they can help them find a way to make it work!
I agree with Mack - this isn't the time for you .
You may be ready and willing, but you're not "able" as yet.
Owning a home is more involved than just paying the mortgage and taxes..............things break....you need a cushion to cover you in the event of unexpected repairs.
You won't be able to call the super to fix things.
Know how much a new roof may cost? a new hot water heater or furnace?
Why put yourself on thin financial ice??
At 22 , what you need is a budget and a plan to save money.....make sure your credit is stellar - then......and only then, imo, should you move forward an buy a home.
Your time will come - plan for it now!
Without money, you're not a buyer. Most of us buy with loans, but you are a bona-fide 100% borrower.
Without money, you're a foreclosure risk waiting to happen. It's one thing to have six months' living expenses socked away, and maybe a little spare change somewhere else . . . but to have "not much money to put down," my advice to you is to wait until you DO have money to put down. At that time, you can decide whether to use it or not for a down payment, but until then . .. you should wait.
All the best,
If so, contact me.
Baird & Warner
773 677 5340
I have a 2 bedroom condominium (actually, it's a PUD, which are sometimes easier to finance) that I'm getting ready to put on the market. It is in what used to be an NSP area, so the city of Indianapolis might still have a program available to help you with a down payment. That program may have ended in 2010, but Dept of Metropolitan Devleopment at 327-5899
or IHCDA at 323-7777 might be able to steer you in the right direction.
Also, Ryan Dorman of Remax sold a condominium in this area and he advertised that he knew of mortgages for people with incomes of, I believe, under $55k, where there was down payment assistance. His office number is 849-7653. You can ask him about his potential client in Hidden Bay whose last name was Hunt.
My hope when I bought this condo was to be able to sell it to someone so that they could have an affordable home whent the time came. Here's hoping we can work something out through realtors and mortgage agents in the area.
I work with a great lender who does a great job educating and helping buyers get to the point where they can purchase a home! We also could sit down together and go over some programs to see what first time buyer programs you are eligable for. Call me if you need any help or have any questions!
I'm going to have to agree with what other agents have said. You may want to purchase now but now may not be the best time.
There are some financial options that don't require money down but they will still require closing costs (which typically in these types of scenarios run much higher than loan programs with money down). The other concern involves the unforeseen expenses: maybe the fridge breaks down, air conditioner stops working, along with many other possible expenses that can occur.
I encourage you to meet with a loan officer and set up a 6 or 12 month plan towards buying a home/condo. I talk with buyers daily that have to wait 6-12 months to purchase in saving towards their down payment. You could buy for as little as 3% (of the purchase price) down.
I know this isn't answering your question but I felt inclined to give advice. I wish you the best of luck in however you choose to proceed.
Century 21 Diversified
Eric Baiz, Realtor, Broker, MBA, ASP
"Indianapolis Monthly 2012 and 2013 rated in top 7% of all agents in Central Indiana."
FC Tucker - Keystone/86th Office
There aren't any programs that pay 100% of your down payment; however, there are various loans/ programs (FHA, INHP) that require low down payments. With a FHA loan your down payment can be as low as 3.5% of the purchase price.. INHP 3%
My lender would be happy to go over options with you. Contact me below.
Real Estate Broker
KELLER WILLIAMS REALTY