Home Buying in 49525>Question Details

Brittany Cor…, Other/Just Looking in 49525

How do you qualify for a lower percentage down payment?

Asked by Brittany Corpe, 49525 Sun Apr 19, 2009

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Hi Brittany, depening on where you live and where you'll be searching for a home there are Rural Development Loans. These are the only true 0 down payment loans available that I am aware of. I have had clients still getting their earnest money back at closing. Check with a local lender in the area you'll be looking to get pre-approved. If I can be of any help in the Clare/Gladwin County area please let me know!
1 vote Thank Flag Link Mon Apr 20, 2009
Brittany, the great news is that there ARE still programs available through which a buyer can obtain a mortgage with a relatively small investment in a downpayment. In light of the economic trauma that our nation has experienced over the past few years, this is is some ways remarkable!

That being said, it is important to have a clear understanding of your particular situation including a complete financial analysis as well as a sense of where you would like to purchase your next home. Each program has it's own guidelines regarding financial qualifications and areas served. A good loan officer will take the time to analyze your specific situation and recommend a course of action.

So, in short, the issue of qualification is 2 fold...you as an individual must qualifiy with regards to credit and liability/asset ratios and the home you are purchasing must also qualifiy within the guidelines for the specific mortgage your are applying for.

Buyers who meet the requirements for "First Time Home Buyers' status and who purchase before December 1, 2009 are also eligible to take advantage of the $8,000 Tax Credit which can greatly assist in off-setting the costs of home ownership. If you'd like more information on this program or a referral to a reputable lender, feel free to contact us.
Web Reference: http://www.auduhomes.com
0 votes Thank Flag Link Mon Aug 3, 2009
Michigan State Housing Development Authority (MSHDA) has a down payment assistance program that only requires the buyer to put down 1%. There are certain income limits, price limits and previous home ownership restrictions (which vary regionally) that the buyer must meet. For more information I can be reached at 616-363-0585.
Web Reference: http://www.mshdalender.com
0 votes Thank Flag Link Wed Jul 22, 2009
FHA is the way to go. With an FHA mortgage, your downpayment can be as little as 3.5% of the loan amount. Likewise, if you are a first time home buyer, you can avail of the $8,000 tax credit that the government is giving. This tax credit is only good for this year. So make sure to take advantage of this federal program.
0 votes Thank Flag Link Wed Jul 15, 2009
Rural Development may be the way to go for you. However only some areas qualify for this type of loan.

Here is a mapping program that you can use to see what areas will qualify.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeActio…

Thanks,

Vito Dolci
616-791-1010
http://www.grForeclosures.com
0 votes Thank Flag Link Wed Jul 15, 2009
Brittany,

Have you or your spouse served in the Military or National Guard? If so you may be eligible for VA financing with no money down. The only two other options are the USDA Rural Developement loan for no money down or FHA with 3.5% down. The RD loan is an option however it limits where you can buy and also has income limits that you can not exceed. Please contact me and I will go over the differences in these loans and lay out what options you have.

It's important you have financing in place before you begin looking to buy. I can help you with that.

Ben DeHaan
Treadstone Mortgage
Direct: 616-363-0585
0 votes Thank Flag Link Mon Apr 20, 2009
Gary is right - Rural Development loans are awesome deals! Here in the Grand Rapids area, Exchange Financial is able to offer this program. Scott De Wolf is an excellent loan officer at Exchange Financial with over 20 years in the business. He can be reached at 616-957-3480. When you are preapproved for your loan, feel free to contact me as this program has specific geographic areas that apply for the loans. Scott can help you figure out just the right program for you. MSHDA also has some excellent programs that Scott can review for you. I would be happy to help you find just the right home in Kent, Allegan, Barry, Newaygo, or Montcalm Counties. Good luck to you!
Linda Najar
Greenridge Realty
2009 President, Western Michigan Chapter
Women's Council of Realtors
0 votes Thank Flag Link Mon Apr 20, 2009
Brittany,

USDA Rural Development may be available in your County and could offer a low or no downpayment option. There may also be grants available depending upon your financial situation. I suggest going to this website to see if you may qualify.

http://www.michigan.gov/mshda/0,1607,7-141-45866---,00.html
Web Reference: http://mi-living.com
0 votes Thank Flag Link Mon Apr 20, 2009
good morning ...fha is the way to go.......3.5% down....and the seller can pay up to 6% of the sales price towards your closing costs and pre-paids...out of pocket prior to close- earnest money deposit- first yr's hazard insurance- possibly the appraisal, and if you want a home inspection, that too...all but the home inspection will credit towards the cash to close.....i hope that helps...bob mcclure- success mortgage partners- plymouth, michigan.....
0 votes Thank Flag Link Mon Apr 20, 2009
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