The days of no documention, zero down loans with low interest rates have disappeared with the current credit crisis. The best loan, at present, is FHA with 3% down. However, your credit score is now even more important, as lenders are being more cautious. You may still get something close to zero down and a reasonable rate if your credit is exceptional. The lower your credit score the fewer options you will have and the higher your rate. Hope this helps!! rick

Sat Apr 26 2008, 09:58

The answer is Yes. FHA has good programs with 3% down. If it is your first home in MI you can use the MSHDA program. Let me know if you need a Lender name.

Sat Apr 26 2008, 08:29

Yes! In fact there currently several lending options that will let you purchase a home without a down payment. These are competitive FHA loans with Great Interest Rates

Sat Apr 26 2008, 07:41

Noelia, I'm glad to see that you're taking the correct first step and inquiring about lending programs before looking at homes. Most real estate companies have affiliated lenders that are well versed in a variety of homes. If you do not have an agent, Melinda and her team would be a good choice.

I suggest speaking with at least 3 lenders and comparing their good faith estimates. Here are some additional sources for lenders:

Housing and Urban Development (HUD) http://www.hud.gov/ll/code/llslcrit.cfm

USDA Rural Development http://www.nal.usda.gov/ric/ricpubs/housing.html

State of Michigan MSHDA http://michigan.gov/mshda

Each loan program will have different ceilings for home values and some for income.

If you need any additional assistance, Melinda, Sonya, and I are all in Michigan and can help. Melinda would be the closest.

Sat Apr 26 2008, 07:23

Noelia - with the recent tightening of criteria for loan approval and the credit crunch you are asking a good question. The good news is that there are still programs available with little to nothing required as a down payment. Like Melinda stated you need to speak to a reputable lender to see what you qualify for. There FHA, MSHDA & Rural Development programs that require little to nothing down. But, there may be loan programs available specific to the area you are purchasing in...be sure to ask about that as well. Remember that even though some loans will require little to nothing as a down payment most require some out of pocket costs such as the appraisel fee, application fee (sometimes), home owners insurance and your home inspection. Some of these can be refunded at closing however. Good luck!

Sat Apr 26 2008, 07:03

Noelia, I would highly suggest that you speak with a loan officer. There are some really good programs out there. Just closed a transaction yesterday where my buyers got 1/2 of their earnest deposit back. However, that was a rural development loan where you can only buy in certain areas. You would have to check with a loan officer to see if the areas you are looking at qualify for this type of loan. There are also income guide lines, you have a have a minimum credit score of I think 620, it also depends on how many people will be living in the home as well. Again, a loan officer would have to help you with this that is well versed with this type of loan.

Of course there is FHA and MSHDA loans as well. These might be good options for you as well. When you speak with a loan officer they can look at your particular situation and decide what the best program (s) are for you.

If you are not familiar with some good loan officer, please go through my website athttp:// www.GoMelinda.com and request this information. I will be happy to give you some names and numbers of some loan officers that are very good at what they do!

I hope this information is helpful! Best Wishes!

Sat Apr 26 2008, 06:16