Home Buying in 60013>Question Details

Becky Adams, Renter in Lakemoor, IL

What if i don't have a down payment?

Asked by Becky Adams, Lakemoor, IL Fri Feb 18, 2011

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16
I see there are some creative answers here, but IMO if you don't have a down payment, don't buy a home till you can come up with one.
1 vote Thank Flag Link Sat Feb 19, 2011
As much as we try, we cannot save all polar bears and tropical forests. Similarly, we cannot make all people homeowners. Some of us are just not destined to have their own homes. It might be even better this way as the last 4 years of foreclosures and damaged lives showed us. So, if you don't have a down payment, it is perfectly fine. Perhaps you are not ready to own a home yet. It is OK to wait until you are sure you are financially prepared for this big and life changing decision.
1 vote Thank Flag Link Fri Feb 18, 2011
Becky- It has been 10 months since you posted this question. Have you been able to save towards a down payment? I have a listing at 21 Meadow in Oakwood Hills offering $4000 towards closing costs, so if you've been able to save, you might get some assistance this way, also.
If you're still looking and not working with another Realtor, I'd be glad to assist! Feel free to contact me.

Joanne Cecchini
Prudential Starck Realtors
224-629-1010
0 votes Thank Flag Link Sat Dec 3, 2011
Hi Becky,
As mentioned in the previous post, there are down payment assistance programs available for qualified borrowers. The key is "qualified borrowers." If you are exploring the idea of purchasing a home without a down payment, the first thing you should really do is contact a lender so your full financial picture can be asseessed. If you'd like more info on down payment assistance just check out this link, http://www.box.net/shared/goif6kzajz
it gives the basics. Call me if you have further questions.

Cecelia Marlow
Chicago Bancorp
Mortgage Banker
312-738-6294
0 votes Thank Flag Link Tue Feb 22, 2011
Becky,

Contrary to almost ALL the previous posts....you still can obtain a loan without a down payment. There are several options including VA (if you are a Vet), USDA (for rural areas), and combining FHA with a down payment assistance grant. FHA also has a $100 down program for buying their foreclosed properties. A gift from a relative is also allowed.

There are options. I'm surprised no other lenders have responded. Unfortunately, you've been reading wrong information from people who are not very educated on mortgage products, or can't think outside the box. Email me if you'd like more info. Good luck Becky!

Mike,
mcline@waterstonemortgage.com
0 votes Thank Flag Link Tue Feb 22, 2011
Hi Becky:

You may be interested in contacting Kathie Gossett, Branch Manager of First Midwest Bank in Crystal Lake, IL 60014 (815) 356-2118, or Shawn Blaha, (773) 714-6201 also First Midwest Bank Branch Manager at the Higgins Rd. Location. Both have programs to help you get your credit in order and help with a planned system of saving. Opportunities will be there for you in 2012. P.S. Even if your credit is in order, they can let you know how good your rating is.
0 votes Thank Flag Link Mon Feb 21, 2011
Best save towards a down payment ALL lenders will require at least 3.5% or more

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 19, 2011
J R said it best, but I'd still like to amplify on this somewhat.

Lenders have become reluctant to accept people with no cash in the bank committing to a 30-year loan obligation. Call them crazy, but they really want to see some evidence of financial stability in their borrowers - like good credit histories and the ability to sock away a little cash now and then.

While there are programs to assist troubled borrowers become homeowners, the fact is that they will still be in a precarious financial position - it's one thing if you have to borrow $100 to cover the rent one month, it's another thing if the furnace dies while you're spending the weekend at Mom's and you come home to burst pipes - insurance will help, but it won't really make you whole. And it won't pay first.

All the best,
0 votes Thank Flag Link Sat Feb 19, 2011
Say "bye bye" to the no money down programs. Right now you're going to be required to come up with a minumum of 3.5% for an FHA loan. Then you can figure another 2% to 3% for closing costs.
0 votes Thank Flag Link Sat Feb 19, 2011
There are lending programs to assist you! SmartMove mortgage products can put you into your own home with $1,000 down and a credit score of 620. These programs are ideal for borrowers who need extra flexibility on sources of income or who have limited funds for a down payment and/or closing costs. To explore your options call Derek Hedlund at 847-783-6186.
0 votes Thank Flag Link Sat Feb 19, 2011
Becky
Not having a down payment is part of the problem. Also lenders consider job history, consistent earnings and debt to income ratio. IF you have good credit score, job history and income, but lack the down payment, have a co-signer family member help you qualify for a loan. 3.5% is the minimum down unless you are a veteran, then 100% financing.
0 votes Thank Flag Link Sat Feb 19, 2011
Talk with a lender, start with your bak as you already have a professional relationship with them. Realistically 3.5% for down payment plus there will be title & closing costs.
0 votes Thank Flag Link Fri Feb 18, 2011
If you have $1.000 there may be a home for you.
0 votes Thank Flag Link Fri Feb 18, 2011
Hi Becky, The only way to own in today's market without a downpayment is to have whats called a Gift of Equity, meaning you must buy a home from a close relative so that they may gift you whatever is needed for a downpayment thru the equity in their home. This is the only way we know of to buy without downpayment.
Depending on the price range your in and we don't know the market in IL but if you can find a home say around $100,000 then you would need 3,500 for a downpayment FHA loan and that money you could also get from a relative but it couldn't be a loan it must be a gift. Hope this helps.

All the best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Fri Feb 18, 2011
Unfortunately, most all the programs for first-time buyers are gone. Here are a couple of ideas. First, you can try to rent to own a home where a little more payment each month can go towards home ownership. Or you can just do this yourself. Usually home ownership mortgage payments are less than rent. Another idea is to look for HUD $100 downpayment homes or Fannie Freddie 3% down properties. These are the smallest down payments available.

If there is a will, there is a way. And if you want to own a home, find a way and make it happen.
0 votes Thank Flag Link Fri Feb 18, 2011
Not a problem. I have a wonderful in house lender that I have been working with for Renters.

Give me a call and a can fill you in,

Regards,
0 votes Thank Flag Link Fri Feb 18, 2011
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