Best of luck!
I'm working with a couple of buyers now who have good credit and the income to qualify, but do not have money saved for a down payment, or to cover their loan closing costs and pre-paid expenses. Several other agents have mentioned USDA, VA, Oregon Bond, and the Key Bank CRA loans. These options all offer no-down-payment programs, but a buyer must meet the program requirements to be eligible. To cover the loan closing costs and pre-paid expenses, a buyer can request that the seller contribute toward these costs.
As rents have continued to rise, and home prices and mortgage interest rates have come down so much, a couple of my clients who are now renting, will actually save money each month when they buy a house in their price range. This is based on their payment+interest+taxes+insurance (PITI). Of course, repairs and maintenance that come with home ownership are an added expense, so be sure that is something you can handle as needs arise.
The first step is getting pre-approved. I'd be happy to recommend a few reputable lenders.
Sally Mehalovich, Principal Broker
You can do everything from selling your gold crowns to paper routes. Work for at home elder care companies. Sell avon, herbalife, vemma, fuller brushes, etc.
Spend less on coffee, etc.
This may not be the best time for you to buy. I risk being tarred and feathered but believe that we have more than 10% drop left in values in general. Rates are amazingly low but they wont be going up soon. Dont listen to the scare tactics of lenders on the radio.
You mention you can afford the monthly payment. Does that mean you've already been to a lender and they helped you determine your P.I.T.I.?
Here's a thought, might be creative in this day and age: Save by not spending.
Since I'm not a financial planner, it's hard for me to make a statement on how anyone can save money, let alone for a down payment. Cutting back on non-essestials is a good start.
I mean . . . if you really want to be creative, how's that left kidney of yours working? ;-) I hear there's a market for that. But, hopefully, you don't have to be that creative in order to get in to a home and with time and saving you'll be good.
And keep in mind, the Oregon Bond program is a good way to start. However, if you don't have any savings, you should, even with 0-down loans. You have to have a nest egg my dear. At least 6 months of reserves just for your own peace of mind. Buying a home requires thought and maintaining a home, paying taxes, hazard insurance, are all incidentals to being a home owner. The monthly payment is one thing . . .
It's like negotiating a maze sometimes, and if you're serious and ready to make a commitment of time and energy, it can be done! if it was easy, everyone would do it but many don't have the dedication to make it happen. IF you want it, there are ways if you can be flexible on area and price. I recommend that you find a lender you trust who can help you through the maze, as well as a Realtor who works with first-time buyers (like me!)
Lastly, there's a wonderful resource by my local Realtor association (hownw) where you put in the area where you want to live, and some other minimal info, and it will come up with a list of programs you might qualify for.... I would start there and I've put the address below. Follow the link and you might get some answers right away and a place to start your search for the right solution for you! I wish you the very best, and of course, I can get you all the websites and resources for the programs I mentioned earlier. Contact me directly and I'll be happy to help more. Best to you, Marge
Nice to meet you! There are loans out there that don't require a down payment. I am not a Mortgage Broker, however I work with some great one, that can show you those options.
And then here is a great article I found here on Trulia about finding your down payment. Email me and I can send it. -Jewel K Stockli, Prudential NW Properties email@example.com
The Oregon Bond program is a great way to go. This is generally funded every year, but the funds run out quickly, so if you are interested, I would explore the options soon. Here today, gone tomorrow as we say. Another option is to have a family member gift you the funds. Just be sure to have excellent documentation along the way.
Key Bank and USDA both have 100% loans if you or the home qualify. There are other options, depending on your individual situation, but I would suggest consulting with a good mortgage broker in advance. Then go shopping:) Let me know if you need any help.