Financing in Greenville>Question Details

Katielel, Home Buyer in Transfer, PA

can i get a mortgage with just a $1000 down....want a home that cost $100,000

Asked by Katielel, Transfer, PA Thu Mar 18, 2010

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USDA (US dept of Agrigulture) and VA loans have 100% financing. However, FHA is the most popular program right now and this program requires 3.5% down. Remember, when you buy a home you may have to pay for miscellaneous items associatied with a home, any repairs, utilities, furniture, etc. If you don't have much money saved you may want to wait before you jump into owning. How is your credit? Do you have stable income? How much money do you have saved? What is your reason for wanting to put so little down? Consult a mortgage professional in order to find out if you are pre approved and for how much, etc. Good luck! Chad
0 votes Thank Flag Link Sun Mar 21, 2010
Shoot for the $100 down program by buying a HUD repo. It'll allow you to repair the home up to $5000. Make sure the lender allows you to finance the whole $5K. Some lenders require you to pay half of the escrow for repairs. You'll need to put $1000 as earnest money, but $900 will be credited back to you at closing. HUD will pay up to 3% of your closing costs. Anything above that, have your loan officer bump your rate up and use his/her yield spread premium to offest additional fees. You'll also need about $450 for the appraisal unless the L.O. is willing to pay for it and collect at closing. You may want to do an inspection which can run you about $300. Also if you are a Veteran, you can get a loan at 100% financing.
0 votes Thank Flag Link Thu Mar 18, 2010
There aren't many ways to purchase a home with little or no money down.

One option is the VA mortgage. With VA, you can finance 100% of the purchase price. However, you must be either military, national guard, or a veteran to qualify.

Another way is USDA. With USDA, you can also finance 100% of the purchase price. However, your income must be within the limits for the family size for the county in which you want to purchase a home. In addition, the home must be in a "rural area." Usually, that means an area with a population of 10,000 or less. For more information about income and property qualifications, see

With FHA, you must put at least 3.5% down. However, there may be grants or "silent seconds" available in your area. Usually, they are made available by local, county or state governments. "Silent seconds" are second mortgages that do not have to be paid back provided you live in the home for a minimum period of time. Some states will allow you to "borrow" against your expected homebuyer tax credit. For more information about available grants and programs in your state, see
0 votes Thank Flag Link Thu Mar 18, 2010
V.A. (veteran only) loans are also 0% down. Here is the kicker. Even if you could buy with nothing down when closing costs come up they are likely to want all of that money, and possibly even more.

Even if you could buy with so little down what do you do when something breaks? Lose a furnace and a water pump just how will you pay for it?
0 votes Thank Flag Link Thu Mar 18, 2010
Dear Katie,

Check with you county affordable housing, do a google search.

Some counties are offering the $8k first time homebuyer money upfront to allow you to buy a place. You normally will have to use an "approved" lender on their list so contact one of those lenders.

Good luck!
0 votes Thank Flag Link Thu Mar 18, 2010
Hi Katielel,
I understand that you may want to take advantage of the low interest rates and low home prices that are avialable right now but what I do if I have a client in the same position as you is have a consultation with my reputalbe mortgage broker my client and myself. After learning more about you and your financial and income history, and if you have served in the military or work for the goverment we would determine a plan of action for you. There might be some funds available for you to tap into, or the information may show that it might be best that you wait until more reserves are built up. But with just $1000 you would want to take advantage of seller assist. This is when you put an offer in on a home and ask for a certain percentage back from the seller that would go twords your closing costs. Again you would need to refer back to your mortgage broker to know how much you would need. First step get in touch with a good Realtor who in turn can not only find you appropriate home to look at but refer a good mortgage broker. I hope it works out for you .
Kind Regards
Roy sjolund
Keller Williams Real Estate
0 votes Thank Flag Link Thu Mar 18, 2010
No - FHA minimum requirement is 3.5% down, so you will need $3,500 of your own funds. The only program you can get 100% financing with ZERO down was the USDA program. Unfortunately they are running out of money and we don’t know when they will be getting more funds.
0 votes Thank Flag Link Thu Mar 18, 2010
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