Home Buying in Philadelphia>Question Details

Alicem, Home Buyer in Philadelphia, PA

IS THERE A PROGRAM WITH NO CLOSING COST?

Asked by Alicem, Philadelphia, PA Tue Sep 13, 2011

I was told by a realtor that there's a program just open that there's not closing cost or down payment. Can you tell me that there is one? Thank You

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15
Hi, Alicem.

In order to avoid closing costs, there are 2 good options if you're a buyer:

1. When negotiating with a seller, have he/she provide you with a closing cost credit as part of the deal (FHA allows up to 6% seller's assistance).

2. If #1 doesn't work, offer to pay a higher price for the seller's home and get a closing cost credit (just be wary of homes values in the area; you don't want to pay too much and have the appraisal come in low).

If you need anything else, just let me know.

Thanks,
Tim

Timothy Garrity | Realtor & Consultant
Licensed Real Estate Salesperson - #RS314897
215-829-8850 Office
267-879-2716 Mobile
tim@usspaces.com
1 vote Thank Flag Link Tue Sep 13, 2011
There are closing costs when you buy a home. There are programs that allow seller assist with closing costs as others have mentioned.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Tue Sep 20, 2011
The seller paid my closing costs, I got a loan at 5.7 percent and three percent down cause I had horrible credit, it was a special program, forget the name, but my scores was in the 300s, I had to buy a home around 130,000 and no more which was fine with me cause I had alot of nice homes to choose from in the pgh area! You dont need good credit to get a great deal sometimes having bad credit helps you, in my case I would of not gotten a loan if I did NOT have bad credit!
0 votes Thank Flag Link Sat Sep 17, 2011
Alicem,

Most programs are a mix of a few different things that allow you to purchase a home with minimal down. As mentioned below this can be accomplished through a number of different ways.

1) Seller Assist
2) PHFA loans
3) Grants from the city of Philadelphia
4) Grants from individual banks

I specialize in working with first time home buyers. Contact me if you have any other questions.

Hope that helps.

Ben
0 votes Thank Flag Link Tue Sep 13, 2011
Alice,

If you are interested in receiving our home buyer newsletter by email that would include current tips in the Philadelphia area for saving money on closing costs ...

You can simply register by texting SAVE to the number 42828 on your cellphone or mobile device.

You are also welcome to contact me via email closingservices@libertybellagency.com
or by phone at 215-625-3660.

Best of luck to you in finding the home of your dreams!
0 votes Thank Flag Link Tue Sep 13, 2011
Good Afternoon Alice,

There is a program that offers zero down, zero closing costs, with less than perfect credit: and you will also be able to have a rate 1% below market. This program is offered though the Neighborhood Stabilization Program. If you would like more information, I can be contacted at 267-348-4008.
0 votes Thank Flag Link Tue Sep 13, 2011
some neighborhoods have special grants which can be part of your down payment. you can also work with a lender and agent to have enough "seller assist" to cover most or all of your closing costs. with rare exception you will likely need 3.5% of the purchase price. there are exceptions for veterans, some doctors, and others whoch you can discuss with a lender.
0 votes Thank Flag Link Tue Sep 13, 2011
There may be a bank out there that is offering such a program to fulfill its CRA requirements, but other than that there are only programs that work in specific, limited situations. For example, a VA loan requires no downpayment, but it is limited, generally, to veterans. Even a VA loan carries closing costs from many different parties, and the real estate agent would have to structure your offer to have the seller and/or lender pay the closing costs. You also have PHFA loans, that can be combined with conventional, FHA and VA financing and if you qualify there is a closing cost assistance loan which will cover some of the downpayment but you will still need help from the seller. So it can be done but only in specific situations and your real estate agent has to know how to structure it.
0 votes Thank Flag Link Tue Sep 13, 2011
Alice,

I just closed a deal for my first home buyer who utilized different programs together and paid almost nothing at the settlement, however, she had to put $1000 for earnest deposit, home inspection and loan application.

as first home buyer, you may utilize:

1. FHA loan with only 3.5% down payment
2. ask seller for 3-6% seller assist towards closing cost
3. PHFA Keystone Assistance Loan for closing cost and down payment for either $1,500 or 3,000 with "0" interest. http://www.phfa.org/consumers/homebuyers/khlprograms.aspx. you have to pay back when you sell, transfer or pay off your loan.
4. first home buyer closing cost grant, $500 (free with no pay back needed) from the city.

for #3 and #4, you have to participate and complete the first home buyer counseling program with the agencies authorized by HUD:
http://www.phfa.org/applications/counseling_agencies.aspx#se…

First thing first, you need to find a mortgage broker or bank loan officer to check your credit, you may contact me if you need referrals for the lender who has experience working with these programs.

i would be happy to assist you for the house hunting after you are pre-approved by the lender.

Please feel free to contact me via email or cell phone at 267-254-4405.

Look forward to hearing from you and good luck.

Qing Hui Wang(Emily)
Realtor Licensed in PA
Bilingual in Mandarin
Century 21 Advantage Gold
5267 Roosevelt Blvd,
Philadelphia, PA 19124
Prefer Cell: 267-254-4405
Office fax: 215-537-4818
Voice mail: 215-671-4700 x 1407
Office: 215-537-0200
Email: eqhw2002@gmail.com
0 votes Thank Flag Link Tue Sep 13, 2011
Hi, Alice!

There is a wonderful program - if you qualify - through National Penn Bank. Call me for more information.

Marilyn Silberstein
Elfant Wissahickon Realtors
(215) 859-1749
0 votes Thank Flag Link Tue Sep 13, 2011
Alice, I've had clients work with the USDA loan program which does NOT require any money done. It allows you to purchase in specific areas, such as Kenentt Square, and parts of Phoenixville, for example. Some really great buys. Give me a call or email janice@soldnotlisted.com if interested 610-764-3062
0 votes Thank Flag Link Tue Sep 13, 2011
Alice, I've had clients work with the USDA loan program which does NOT require any money done. It allows you to purchase in specific areas, such as Kenentt Square, and parts of Phoenixville, for example. Some really great buys. Give me a call or email janice@soldnotlisted.com if interested 610-764-3062
0 votes Thank Flag Link Tue Sep 13, 2011
Alice there is alot of different mortgage programs but only a couple with no money down which are VA or USDA. Both allow the seller to pay 3 to 6% of the buyers closing costs. You need to start by meeting with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any of tehse programs that you may quailify for.

http://www.trulia.com/blog/scott_godzyk/2011/08/how_do_i_kno…

Please see my blog for more tips and advice on getting a mortgage
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Sep 13, 2011
Fannie Mae has had a Program as part of HOME PATH were they paid the Closing Cost;
but that expires on Oct. 31st, and the Escrow would have to CLOSE by Oct. 31st.

As far as NO DOWN; that would describe a VA loan or a USDA Loan, but you didn't say you were a Veteran nor that you were buying RURAL.

Enlist a good Realtor who will find out if there are any local programs for Down Payment assistance, and whether the Home Path Program has been extended.

Good luck and may God bless.
0 votes Thank Flag Link Tue Sep 13, 2011
Hi, There are some loan products that allow the purchaser to roll there closing costs into the loan such as FHA loans. As for 100% financing options (including down payment & closing costs) those are extremely rare if any these days. Depending on your needs and occupation you may qualify for some special programs like these but it's best to contact a mortgage professional directly. You can call any broker you like to inquire.

Chris
0 votes Thank Flag Link Tue Sep 13, 2011
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