Home Buying in Edgewater>Question Details

Alleygeter, Home Buyer in Edgewater, FL

When trying to purchace a home can the down payment and closing cost just be added to the monthly payment?

Asked by Alleygeter, Edgewater, FL Sat Jul 16, 2011

I only have $970.00 monthly income from Social Security. I only have rent receipts and a bank account. No bills. No credit to speak of except rent. I am a bachelor and only need something cheap and small. Would a bank be willing to do this?

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Another way for the closing costs to be "financed" in, say you see a home you like and it's listed for $69k, but you decide that is too much and you instead think to yourself that $65k is a fair price for the seller to get, but you want your $4k in closing costs to be paid for, and so you offer $69k and ask for the $4k in settlement cost "credit" from the seller, meaning that the seller would pay up to $4k in your settlement (closing) costs. Keep in mind the home has to appraise for the purchase price. But in that situation you can "finance" the costs in to the loan amount, since the down payment is based on the sales price. And then for the down payment, just like Mike & Ron said, you can seek out down payment assistance as $970/mo of income should make you eligible for quite a bit.

Down Payment & Closing Cost Assistance programs that may be able to help you:
http://www.floridahousing.org/Home/HousingPartners/LenderPag…
http://www.mfhp.org/volusia.php (kind of a frustrating website, tough to find the information)
http://volusia.org/community_assistance/housing.htm

So you say you have no credit, that isn't actually an issue if you can document the non-traditional credit (rent, utilities, cell phone, etc.) as I described in a blog post of mine at: http://www.trulia.com/blog/shanethemortgageman/2011/06/no_sc… called "No scores? No problem. Just use non-traditional credit."
1 vote Thank Flag Link Sat Jul 16, 2011
as a rule no:
When we went thru the period of "darkness" a few years ago,
1.)Lenders were making 100% loans,
2.) to people who didn't qualify,
3.) on houses of questionable value
4.) with loans that had variable (inflating) rates
5.) and many other "shady" practices

Most of those institutions are now out of business,
And many of those homeowners are now living in apartments.

I doubt that we will ever experience that again; not in our lifetime.

Lenders require you to have EQUITY in your house, and they are very tight on their qualifications.

Your best options are to investigate local (Community, County & State) Programs for Down Payment Assistance and/or Grants.
It would help if you had affiliation with some group such as Teachers, Police or Fire; something like that,
a local Realtor or Mortgage Broker could guide you.
The VA has 100% loans if you're a Veteran.
Please call a Realtor to help you.

good luck and may God bless you
1 vote Thank Flag Link Sat Jul 16, 2011
It is possible but not easy. There are some programs that allow minimal costs to a buyer to close and some even offer down payment assistance. You must meet rigid standards and qualify under the special programs that are available. Talk to a good mortgage broker or lender to see what programs might work for you. Also you can talk to the local government housing authority to get more information on their programs and lenders who work with them. Prorams like the Neighborhood Stalization allow buyers with limited income to purchase homes that have been renovated for a reasonable price. Some of these programs allow you to roll some or all of the upfront costs of buying a home into the loan.
1 vote Thank Flag Link Sat Jul 16, 2011
You might also try a credit union.
0 votes Thank Flag Link Mon Jul 18, 2011
I am a realtor in Edgewater, FL . I can send you a list of lenders who can help you try to get a loan. Just shoot me an email and I will let you know what some of your options are. Thanks, Anne ( anne.crate@yahoo.com)
0 votes Thank Flag Link Mon Jul 18, 2011
Hi Allygeter,

You may also be eligible for a bond from Florida to allow you to buy with no money down.

Contact http://www.KristineBreadeau.com with HomeBanc, she is very knowledgeable and can get you the bond money if you need it.

All the best,
Alma
0 votes Thank Flag Link Sun Jul 17, 2011
Good afternoon, Alleygeter,
There are lenders that can help as real estate agents/Realtors are not supposed to give financial advice if not licensed to do so--we show homes and do home contracts, etc.
If you need a lender who can help Seniors just e-mail me and I can send you lenders you might try to see if they can work out a way for you to qualify.

Good luck and my e-mail is
relocateisapieceofcake@gmail.com
(you can cut and paste if you like)
0 votes Thank Flag Link Sun Jul 17, 2011
While you may be able to qualify to purchase property, many lenders will not make home loans on property under 40K because the standard loan expenses are such that they cannot make any money on loans that small for property. However this does not mean all lenders follow this practice. Some folks resort to using personal loans to buy less expensive property. Talk to every lender and mortgage broker you can. You may find that they have some ideas that can help you get into your own place.
0 votes Thank Flag Link Sat Jul 16, 2011
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