Financing in North Potomac>Question Details

Kelly Pell, Home Buyer in Gaithersburg, MD

can we buy without a down payment? My credit score is 720 and my fiances score is 600 something...

Asked by Kelly Pell, Gaithersburg, MD Wed Nov 4, 2009

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Wait and watch. Our government in its indefinate idiocy may be extending the first time buyers credit. If it does, you may find there is a way to use that as a down payment. NEVER count on anything until it is final. The details can be changed any time before a bill passes into law.

The best answer is the hardest to hear. Cut your spending down. Stop buying anything you can live without. Save as much as you possibly can. Also, since your financee has a lower credit score I would assume that means debt exists. Kill it. Talk to a non-profit credit counseling service. Pay off your debts in a smart way. Pay off your highest interest rate debt forst. Then pay off the next highest and so on until all debt is gone. Doing this you will have found that you now have higher credit scores and cash in hand. From this day forward pay for everything with cash. Forget credit exists. Just use a credit card IF and WHEN you can pay it off at the end of the month. Do not pay for coffee. Buy a thermos and a coffeemaker. You will pay for them in a very short time. The same idea applies to everything. Do not buy new if used will do. Ask if you NEED (not want) this. In time you will save a decent amount for a downpayment. Remember, never risk losing everything if you can wait and be safe. That means do not depend on getting a adjustable mortgage or anything but a fixed rate. And only buy when you are sure prices are not dropping moer. And that looks to be awhile longer yet.
1 vote Thank Flag Link Wed Nov 4, 2009
I know of a few lenders that will do 97% NO MI
Lets talk.



Wayne Christopher
Licensed Real Estate Agent
RE/MAX 2000
11900 Parklawn Drive Suite 100
North Bethesda, MD 20852
(240) 381-8441
Website: http://www.kensingtonareahomes.com
0 votes Thank Flag Link Sat Jul 27, 2013
Hello Angelkelzas,


This depends on what type of loan is available to you i.e. VA loan. you may be eligible for down payment programs. feel free to contact me if you have need assistance.
0 votes Thank Flag Link Sat Jun 2, 2012
Traditional 100% conventional financing is a thing of the past - at least temporarily. There are creative options that are possible that can allow you to still buy. It is most important that you are setting yourself up for successful homeownership. It is one thing to get to closing - but being able to pay and stay is significantly more important. You need to work with somone who will review your overall financical situtaiton who will not only address a plan to allow you to purchase but also help to create a plan to make sure you are successful for many years to come. People trying to buy with little or no money down have more limited choices, however, with your credit scores being high, it shows that you are a financially responsible individual.
0 votes Thank Flag Link Sat May 5, 2012
The answer is, "it depends." There is some great advice here. I would recommend that you speak with a lender before making any decisions on how to proceed. The lender can take a look at your entire financial picture and give you real advice on what your options are. If you are not already working with a lender, let me know and I would be happy to make some recommendations.
Web Reference: http://www.alexsaenger.com
0 votes Thank Flag Link Mon Jan 4, 2010
HOC's Down Payment Assitance Program maybe the answer if you both are First Time Home Buyers, one of you work in Montgomery County and are buying in Montgomery County. It's government financing that can be applied towards downpayment and or closing costs.
here's a quick link explaining it.... http://www.maryland-fha-loans.com/HOC.html
The USDA doesn't require you to be a First Time Homebuyer yet it is restrictive on where you can purchase. It is a true 100% financing. This link will show you if your property is eligible for this financing.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Feel free to call me or e-mail me if you have further questions.
cell 240 353 - 5102
0 votes Thank Flag Link Tue Nov 17, 2009
Angelkelzs,

I just settled on a USDA Rural Housing loan. This loan was great. The buyers got 100% financing and had to pay a little at settlement we asked the seller to pay $4,000 toward the buyers closing costs. The interest rate was fixed at 4.750%. Plus since they closed 11/2 they get the $8,000 tax credit.

The first step you need to take is talk with an experienced loan officer to determine what you program you all qualify for. The USDA Rural housing has limitations on certain areas. Before you pay off debt please talk with someone and make sure you don't purchase anything large or open any new credit lines. DO NOT sign up for any credit counseling programs before talking with a loan officer. Most mortgage companies look down on a company having to negotiate to pay your bills. If you have any questions feel free to call or email me. I work Carroll, Frederick and Montgomery counties.

Good Luck,
Tammy Durbin
240-405-3118
tammyd@longandfoster.com
Web Reference: http://tammydurbin.com
0 votes Thank Flag Link Thu Nov 5, 2009
There are a couple of options for no money down.
The first would be a VA loan if you or your spouse have ever been in the military.
The second option is a USDA Rural housing loan. These loans have limits to the amount of income you can make and they are for specific rural areas

Check the USDA's website for eligiblity

feel free to contact me if you have any questions
0 votes Thank Flag Link Wed Nov 4, 2009
typically you will need 3.5% down payment for an FHA loan. If one of you is a veteran, then usually less than $100. However, you might think about whether you can afford home ownership if you have no savings. Where will the $$ come from if the hot water heater quits? If you need a new roof? Check out the programs that your bank has to offer. Also note that the $8000 first time homebuyer tax credit can be used as an additional down payment, but it cannot be used as your only down payment.
0 votes Thank Flag Link Wed Nov 4, 2009
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