Home Buying in 10463>Question Details

Amira, Real Estate Pro in Bronx, NY

I heard you can buy a home without a downpayment and your mortgage would just be higher than regular. I would be ok with that. Is that true?

Asked by Amira, Bronx, NY Sun Mar 3, 2013

I'm really interested in buying because I can afford a mortgage but don't have a downpayment yet. I have to start saving for it I guess but it would be great if I could just get in an apt and start paying towards my own place right away. I wouldn't mind having a higher mortgage.

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I agree with both responses below. I would say that VA is not the only way you can buy a home without a down payment. If what you heard was that you do not need down payment because it's somehow incorporated into your mortgage, I would really be carefull who you deal with.

Yes, VA might result in 100% financing, but you also have SONYMA which is a NYS program that gives you down payment assistance, so you'll come out with very little money towards your purchase. There's also an organization out there that provides 100% financing (not my company). So it really could have been a number of different things.

What I suggest is to try to save some money. Even if you were to get into a loan were you're not required to put any down payment, you're always better off putting some down payment. Plus you'll always need money towards a good faith deposit when you go into contract on a property.

If you have questions, feel free to contact me. Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
(516) 606-9648
3 votes Thank Flag Link Sun Mar 3, 2013
Amira, my colleagues provided some really good answers below. I agree that for most buyers, VA and USDA are the best options for 100% financing. And while there's nothing wrong with buying a home with 0 down, doing so can make it more difficult for you to build equity, which is one of thekey wealth-building benefits of homeownership. And having a higher monthly payment can make it more difficult to qualify for your mortgage from a debt to income ratio perspective. I strongly recommend that you consult with a licensed mortgage professional from a reputable lender to get preapproved, which involves a review of your financial and credit profile. An experienced and knowledgeable loan officer will help you review all your options and select the right mortgage for your needs. I have extensive experience providing affordable and easy to understand mortgage solutions to promote successful homeownership throughout NYC and nearby suburbs. I am available to meet in the Bronx. For more information or assistance, I can be reached at 917.699.0183. Follow me on twitter @mdenniston247.

I value your feedback, please hit the thumbs up if my reply was helpful.

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
1 vote Thank Flag Link Tue Mar 5, 2013
Good afternoon Amira,

If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.

For other HomeBuyers, Non-Veterans, the program in the Bronx for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.

The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs in the Bronx.

I hope that helps!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
0 votes Thank Flag Link Thu Mar 28, 2013

There are certain ways that you can buy a home with no downpayment. One way is using a VA home loan but for this you must have served in the Armed Forces of the United States. There might be other ways but its best to consult with a mortgage office that can better assist you. Please feel free to give me a call ass I work with some great Mortgage Officers that can answer all your questions.

All the best,
Antonio Sanchez
Exit Realty Search
3928 E. Tremont ave
Bronx, NY 10465
CELL: 347-320-0673
BUS: 347-202-4965
0 votes Thank Flag Link Mon Mar 11, 2013
Hi Amira,

There is an option available to you. There are specific requirements and not everyone is eligible, but if you would like more information, please let me know. Thanks for the question.

David Rodriguez
0 votes Thank Flag Link Mon Mar 4, 2013

Please look at Mark Fisher answer, its the Truth! Please sit down with a Mortgage Loan Officer and go over your pre-approval in detail. The Home Purchasing process is very detailed and you want to get all the facts.

You will need some kind of funding for your downpayment and closing costs.

You can also be a perfect candidate for a FHA LOAN..

We have a HOME BUYER WORKSHOP coming March 23rd!

For further detail please call me direct a 646-957-4648 or email me at :exitwithmillie@gmail.com for all the details and how to REGISTER.

Millie Valentin
Exit Realty Search
3928 E. Tremont Avenue
Bronx, NY 10465
0 votes Thank Flag Link Mon Mar 4, 2013

Your first step is to meet with a mortgage/loan professional to determine how much you can afford to purchase. There are a few grant programs that can assist you with down payment/closing costs up to 3% but you need to get prequalifed first and meet the program's requirements. There are some situations where the seller maybe willing to contribute to your down payment but in most cases you have to bring something to the table.

I would be glad to discuss your options with you.
0 votes Thank Flag Link Mon Mar 4, 2013
That is incorrect unless you are a Veteran and have a certificate of eligibility in which you would be able to put down 0%.

If you are not a veteran another way of finding money for your down payment may be funds from your retirement account, pension, 401k etc or a gift from family.

Feel free to contact me if you have any questions (347) 242-1206
0 votes Thank Flag Link Sun Mar 3, 2013
Pretty much, the only way to buy without a Down Payment is VA and USDA;
Are you a VETERAN?
Is the Property RURAL, (like a farm)?
0 votes Thank Flag Link Sun Mar 3, 2013
Nope not a VA and no rural. I guess I'll be saving before making a purchase. Thanks for the response.
Flag Sun Mar 3, 2013
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