How about wait and save? If you don't have 3.5% for a downpayment, then you most likely dont have a 3-4 month savings cushion in case of a job loss or other incidental.

Possibly your parents could lend you the 8,000 tax credit and you can pay them back when you receive your check after tax time, Dianne Weaver, the Running Realtor, St. Louis, MO. Make sure though that you have funds for inspections, escrows, etc. and can really afford the house payment as it is a privledge to be a home owner.

Get the most recent information on using the Federal tax credit as your down payment at http://www.fhaloanagent.

Nathan, I have a wonderful Lender I would like to suggest.
Bob Sargent
USA Mortgage
314-277-2942

There are programs created it seems like daily and I know Bob can find a program
to accomodate your specific needs. Give him a call.

If I can help you with your home searches, please let me know. I am happy to help!!

Sincerely,

Sheila Gerken-Worley
The Best Seller GMAC Real Estate
636-299-1884

Nathan fha guidelines are strict that you will have to have the money in your savings prior to approval. you will not be able to have a seller credit you to try and get around this. You will have to seek out someone to loan you the money prior or have to wait until you can save it. good luck with your purchase

Are you a first time buyer? If so there may be several programs available that will assist with your down payment. MHDC is one of them. There's also a federal tax credit for first time buyers that may be available if you meet the guidelines - perhaps you could use that money for the repairs and the money you have set aside for the down payment?

FHA allows gifts for the down payment from a relative.

I do have the money to buy a house, I just simply had to save more money. I already had money set to the side to make sure that I would be able to make repairs and did not want to go into a house where I had to use all of that money to put down on it. Do not pass judgement until you know the situation in whole.

Thank you for the advice though.

The answer is simple. . You are not in a position to buy this house! Forget all the scheming and deception and start saving your money. I know that is a strange concept for some, but, come on. What happens when you lose your job? What if the furnace breaks? Obviously you have nothing saved and no back up plan. The kind of thinking you are entertaining is what got this country into such a mess. Lower your expectations to be in line with you capabilities, save, save, save and put yourself into a position to be prepared to actually BUY a house instead of BEG to have one handed to you.

Can your seller hold a small 2nd mortgage for the DP?

I have already found a seller that is willing to take some of the money off the top and also give me a credit for closing cost. The issue that I am having is the downpayment money. I am being told that the seller can not help with this. Are there still any loop holes where the seller can give a not for profit company the money and they can donate it to me? Or can I go in a house and change a light bulb for this company for my downpayment and just make it look like I was being paid for services rendered rather then down payment money? Any suggestions will help

If it is legal in your state and not prohibited by the type of loan that you are applying for: Find a handful of homes that you like. Write your offer on the home you like best and ask the seller to credit you the 3.5 % toward closing cots as part of the contractual agreement. The first seller may not agree but in this market, there is a good chance that you will find one who will agree to those terms.

One option for down payment money is by using MHDC grant funds. It is a program in Missouri that grants downpayment funds for first time buyers who qualify for the income requirements and limitations. This money is only released periodically throughout the year, and when it's gone, it's gone until the next release. Your mortgage lender can help you with the details and see if you are a candidate.

If that money is not available to you, gift funds are another option. Do you have a relative who could help you with your down-payment? If you are a first time buyer you will be able to take advantage of the $7500 tax credit that is available, if you purchase before July 2009. Once you receive your tax credit refund, you could repay the person who helped you with the downpayment gift (if they made it a temporary loan, rather than a true gift).

I hope this is helpful. Understand that with the current mortgage crisis, lenders are forced to be more stringent with their loans. It helps for people to have their own money as an actual investment in their homes and is hoped that homeowners feel more compelled to take care of it and ensure that it stays out of foreclosure.

Best Wishes to you! Buying a home is fun, exciting and nerve-wracking all at the same time. If I can answer any other questions, don't hesitate to ask.

Stephanie Grossman
Coldwell Banker Gundaker
314-313-5403

Use the following link and you will find all the info you may need. If I can be of assistance to you please contact me via my web site r call 636-579-9811. Good Luck!!

http://www.fhainfo.com/downpaymentmoney.htm

If you send me an email, I would be happy to refer you to a very honest, professional mortgage lender who might be able to assist you. You may also want to consider doing a lease to purchase which would over time help you obtain the 3.5%.

Ron Gorman
ronaldgorman@me.com