Sometimes, there may be distressed sellers that may be willing to hold the note. If they own the property outright free and clear, with no mortgage, they may be willing to work a no money down deal, but higher monthly payments. Creativity can always help but if you have no down payment you must be sure you have great credit and a good, steady income.
All the best,
I would also add a word of caution - as a newcomer to the process, be cautious about buying a home with little to nothing down. When you do that, the slightest downward swing in value essentially puts you under water. That is largely why we are where we are now with short sales and foreclosures.
Find yourself a great agent that has experience - and enjoys working with first time buyers. She/he can explain the entire process and should be with you every step of the day. She/he can also refer you to good mortgage resources. The better the resources that support you, the smoother your transaction will be. Good luck!!
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The only kind of mortgage that does not require a down payment of some sort is a VA mortgage and it is only available to Veterans. PHFA, if offered by that particular bank does as low as 3% and FHA mortgages require at least 3 1/2% down which is a good way to go if you're short on cash and a 1st time homebuyer. For conventional mortgages anything less than 20% requires mortgage insurance which is a monthly pmt. added on to your principal and interest payment and is calculated according to your loan amount. Don't forget, you will also need money for closing costs which also runs in the thousands depending on the cost of the home. Hope that helps! I am a realtor with Coldwell Banker and if you have any other questions, feel free to email me at email@example.com or call me at 215-760-7050..
The cheapest way to go, if your income allows, would be to do the PHFA keystone Plus. You would need to use $1,000 of your money and then the rest of the 3.5% total could be grants, gifts, etc.
If you would like to discuss how to do this and get the grant money, etc.just give me a call.
ReMax Action Realty
There are a few 0 down programs still in existance. They are limited to Rural Housing and VA Loans. Downpayment requirements range from 3% PHFA to 3.5% FHA. I am an experienced Mortgage Advisor and have been assisting clients with loans for the past 9 years. Let's chat about your specific situation to saee what you will qualify for. I can be reached at 610-291-1460 or MMcDonnell@PhillyAdvisors.com
VHDA- don't know a lot about these loans but have heard they can do 100%
Also some loans are assumable, that may help lessen the burden of downpayment money.
Bottom line Google it.
For an FHA loan, 3.5% is needed plus a few other costs that will amount to around 2 or 3% of the price of the house. Some closing costs may be paid for by the seller.
Your realtor will help you find the right lender for you and go over the entire buying process with you.