Question Details

Timothy Curr…, Renter in Baltimore, MD

I have no available cash, but my lowest credit score is 748. I have been employed at the same job for 9 years. I pay my bills early most of the time.

Asked by Timothy Curran, Baltimore, MD Fri Oct 29, 2010

Never late. I have 2 car loans, one is mine, one I financed for my son. He pays the car payment, never late. I have 2 credit cards with balances, 1 is about half the limit. the other is 1/4 the limit. I am tired of renting and putting money into someone elses property. How can I buy a home with no money down? Is this possible? I have not even tried because I assume no one would lend me the money> victoria

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Vtabws - HI!
I understand your desire to buy, however, with no savngs, I really don't think this is the time for you to buy a home.
There is more to home ownership that paying the mortgage, taxes and insurance.
In a rental if something breaks,, you can call the super to fix it.
In a home, you're the one paying to have things fixed..... the plumber ... the electrician .. the roofer, etc. - they are all expensive to call in..........furnace goes - do you have the few thoushand dollars needed to replace it?

If you're not able to save money now - how tight will you be financially once you are in a home?

You seem to be in good shape as far as your credit goes, but you really need to get into the habit of saving money.
if you don't, the unexpected expenses of owning a home might put you on thin financial ice.
At the very least - pay off the credit card debt, and start saving.

Plan for this, and you can make it happen.

Sorry if this isn;t what you wanted to hear...but I think a conservative approach will be the best for you down the road.

Best wishes!!
1 vote Thank Flag Link Sat Oct 30, 2010
That is good advice from Debbie below. I would also like to add that grants for first time homeowners offering down payment/closing cost assistance require the eligible buyer to have some of their own funds. As a buyer's agent I am fully aware of assortment of grants. If you default on your loan, your action could be detrimental to the continuation of any program. They want to ensure that you can hold your own to a certain degree. If you find such a program where you can purchase a home with not a dime of your own money, please educate us, I will be blown away.
0 votes Thank Flag Link Sat Oct 30, 2010
You are a candidate for a first time homebuyer program. These programs often provide downpayment assistance. Start calling the banks and mortgage companies in your state and don't stop calling until you find a first time homebuyer program from a first time homebuyer expert.
0 votes Thank Flag Link Fri Oct 29, 2010
It is possible and there are programs out there for people in your situation. Contact a few lenders to discuss your situation with them to see what they have to offer. Talking to more than 1 lender will ensure you learn about the different programs to find out what is right for you.

Best Wishes,
0 votes Thank Flag Link Fri Oct 29, 2010
Your assumption is correct. You need to save. Pay yourself first every time you are paid. Speak to a lender and an agent to see roughly what that minimum amount should be for your personal circumstances and the housing location you have in mind. Your off to a great start with your credit score and work history but other factors such as debt to income ratio and available funds will determin how much you can qualify for.
0 votes Thank Flag Link Fri Oct 29, 2010
Hi, Vtabws

USDA and VA loans do not require any down payment and you can get up to 6% of the sale price in seller concessions which may possible be enough to pay your remaining closing costs. How ever unless your a military veteran or the home of interest is in a deemed rural area and you do not make above a certain income you won't qualify for either VA or USDA financing.

That said, with your score you could go CONV and put down as little a 5% and get up to 3% in seller concessions. Or, better yet, you could go FHA and put down as little as 3.5% and still get up to 6% in seller concessions.
0 votes Thank Flag Link Fri Oct 29, 2010
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