Whatever you do Chester, be sure to ask questions and be sure you understand exactly what you are getting into regardless of the lender you choose. Know the facts! With good credit and an acceptable debt to income ratio, you should be okay.

My advice would also be to begin putting something away for savings just in case of an emergency and begin creating a little nest egg for yourself. Everyone needs a little bit on the side for the just in case times.
http://www.rurdev.usda.gov/

Hi Chester,
You can absolutely get into a home with $0 down, and you do not have to show that you have the money for closing costs. USDA is a government program that does not require a down payment, and you can negotiate up to 6% in sellers concessions, which means the seller will pay your closing costs and escrow up to 6% of the purchase price...
It's very simple to get pre-qualified, so if you would like, I would be more than happy to take an application and get back to you with some numbers and figures for what you may be pre-qualified for. You can contact me via email or by phone anytime. I hope to hear from you soon! Thanks Chester -

Joshua Pick
Sr. Mortgage Consultant
216-236-7266 phone
216-236-7267 fax
jpick@crefco.com

If you can find a Lease To Own property that would be the best. But you'll still need money down and if you don't have any money saved, then I think you are right back where you started. If you are a veteran, you could take advantage of VA financing which is 100% financing with 0 money down, or there is USDA housing and sometimes First Time Home Buyer money that may be available. Understand though, that when a lender pre-qualifies you they will be looking to see if you have at least your closing cost amount saved up. Otherwise, I would check with a local lender for programs that may be available to you and if you can get the seller to pay all of your closing costs, you might be able to do it. Be sure you look into it soon, so that if you can qualify you can take advantage of the $8,000 tax credit through the government.

I would look into lease option as mentioned below. It really is the only option for no downpayment.

Chester........I've got 3 words for you.....

Lease-to-Own.

It's a great way to get into a house today, while you're saving up for a downpayment, and can build up some rent credits which should be able to be used towards the purchase price. Many sellers out there are not "truly motivated" to sell but if you can find one that is renting because they could not sell in the first place.....YOUR IN! And the lighter you can get into the deal (upfront money) the better. You may be even able to give them $500 for the option to buy at the end of the lease.

Now...with that being said....a lease purchase is not for everyone. You need to be serious about buying THAT house and you need to be seriously working with a lender the ENTIRE TIME you are leasing out the house. They will guide you on the right track to do what you NEED to do so that you can qualify in the future.

The only other option would be to find a seller who will let you take over thier lease and start making the mortgage payments on their behalf. In our circles, it's called taking over the property "subject-to" the existing mortgage. It's a little more complicated than a Lease Purchase but it's another avenue to explore.

Hope this gives you a little food for though.

Darin