Financing in Indianapolis>Question Details

Sandy, Home Buyer in Indianapolis, IN

First Time Home Buyer with NO money. I need help!!

Asked by Sandy, Indianapolis, IN Sun Apr 21, 2013

Hello, I am 22 years old and I would love to buy a 2 Bdrm Condo. I don't have much money to put down, are there any programs that can help me. I would appreciate all responses. Thank you

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12
Hi Sandy,
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.
Good Luck,
Steve
1 vote Thank Flag Link Mon Apr 22, 2013
thank you and best wishes!
Flag Mon Apr 22, 2013
You're 22 and have plenty of time to come up with a plan to save money and be in a stronger financial position to proceed with buying a home.

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!

Best wishes........
1 vote Thank Flag Link Mon Apr 22, 2013
Sandy, I'd like to help you take a step back and look at the situation.

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,
1 vote Thank Flag Link Sun Apr 21, 2013
If you are willing to move to Chicago you may qualify for the State of Illinois to give you $7500 you can use as your downpayment to buy a home. Are you willing to move to Chicago?

If so, contact me.

Jeff Nobleza
Baird & Warner
773 677 5340
Jeff.Nobleza@BairdWarner.com
0 votes Thank Flag Link Fri May 16, 2014
Hi, Sandy-

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.
0 votes Thank Flag Link Fri May 16, 2014
Sandy,

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!

Thanks,

Kord Golliher
Carpenter Realtors
317-430-7885
kgollihe@callcarpenter.com
0 votes Thank Flag Link Mon Apr 22, 2013
Sandy,

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.

Respectfully,

Mallorie Wilson
Associate Broker
Century 21 Diversified
malloriewilson.com
317-590-3434 direct
0 votes Thank Flag Link Mon Apr 22, 2013
Hi Sandy, I may have a couple of ideas to add to the conversation. First, Condos come in two flavors. HPR (Horizontal Property Regeimes) are "true condos"; the issue here is that since the recession the minimum down payment required has been 10%; however, in the last 4 weeks the market has changes (due to the private mortgage insurance companies) so that now the minimum down is 20%!! The only alternative is getting an FHA (gov't) insured loan; however, that market has shifted massivly to the point that today less than 5% of the condo associations are approved for this type of financing. The Second flavor of condos are PUDs (planned unit developments) -- where you actually own the land under your unit which also means that no other unit will be either above or below you. These are much easier to get financing, espcially the 3.5% FHA. The two advantages of FHA financing are that you can get your down payment from someone "close" to you, but it must be a gift -- not a loan; and the second advantage is that you can have somewhat higher debt-to-income ratios -- a likely scenario for someone 22 years old. If you can live with a $67,000 non-condo, adorable, totally rebuilt bungalow Downtown, I can recommend a very special and unique situation. Several years ago the federal government created NSP (neighborhood stabelization program) and awared one Indianapolis neighborhood $3.3 million to redevelop about 6 square blocks. The program is almost 95% sold out, but there is a 2 bedroom bunglow at 2915 Broadway. The NSP program supplies both your down payment and all your closing costs. This is quite rare, and a No-Brainer. Please feel free to call or email me if you would like to know more about this.
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
Cell: 317-626-6364
ebaiz@talktotucker.com
0 votes Thank Flag Link Sun Apr 21, 2013
Actually a HUD home with $100 down program will allow you to purchase with just that $-- 100 down payment....however there are only specific homes/condos that qualify for that and you still have to qualify based on income/debt ratios and credit score. These homes can be found through very specific searches that I can set up for you. Of course you also will need to speak with a lender to make sure you understand what your financing options are if there are any beyond that. Please let me know if I can help. ktomyn@c21scheetz.com
0 votes Thank Flag Link Sun Apr 21, 2013
Hi! First of all, congratulations on realizing that homeownership is so much better than renting! I work with several lenders who are always willing to help my buyers get into a home or at least give them the information that they need to get them on the right track. That is always a good place to begin. I welcome the chance to talk to you and make the introduction to these lenders so we can get you in a condo. Just give me a call, text or email and we can get started.

Stephanie Lines
Keller Williams
317-402-5303
stepanielines@kw.com
0 votes Thank Flag Link Sun Apr 21, 2013
Hi,

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.

Thanks!!
Tiff Atkinson
Real Estate Broker
Carpenter Realtors
317-612-4546
tiffatkinson.com
tatkinson@callcarpenter.com
0 votes Thank Flag Link Sun Apr 21, 2013
I work with individuals like yourself (1st time home buyers), who may or may not be able to get pre-qualified for a loan. I can get you to a lender to get pre-approved for a loan that works for you. I also help people buy houses on land contracts, where the Seller finances for Buyer's purchase of the home. As an Affiliate of the Homes for Heroes program, the Buyer gets specials discounts and rebates. Call, text or email please.

Mark Groff
KELLER WILLIAMS REALTY
317-502-0333
teamgroff@kw.com
0 votes Thank Flag Link Sun Apr 21, 2013
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