Home Buying in 10314>Question Details

Amar, Home Buyer in Cook Springs, AL

can I buy a home with very little down payment and closing fees?

Asked by Amar, Cook Springs, AL Fri Dec 9, 2011

Are all foreclosed homes damaged and need a lot of work?

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William Knoop’s answer
All good advice has already been given. There are loan programs available for home buyers with low down payments. Most people assume if you have little to put down on a home purchase you have to go with an FHA loan, this is not always the case. You should meet with a Mortgage Broker to discuss your situation.

As for closing costs, per the other responses, you can try to get a Sellers Concession, you can also opt for a higher mortgage rate and receive a lender credit at Closing to cover some of the costs.

Check out my website to get a free personalized rate quote. http://www.nysmortgagerates.com

Best regards,
0 votes Thank Flag Link Sun Dec 11, 2011
The FHA mortgage loans have lower down payments. Speak to a mortage representative and they will be able to advise you on which mortgages apply for your needs. Many foreclosed homes need very minor repairs. As you review the available homes you will be able to find the houses that meet your needs.
0 votes Thank Flag Link Sat Dec 10, 2011
Yes depending on your credit. Contact a mortgage broker & get pre-approved. Some foreclosed properties need a lot of work & some only need a little TLC. You just have to do the research. Good luck.
0 votes Thank Flag Link Fri Dec 9, 2011
You may be able to, therefore visit with any licensed loan officer, after reviewing your overall financial information, credit, debt, income, etc., a determination on qualification can be made; then go from there.
0 votes Thank Flag Link Fri Dec 9, 2011
The FHA requirement is 3.5% down and you can still get a seller concession for the closing costs. USDA has 100% financing still. Most foreclosed homes are damaged, at least somewhat, and suffer from lack of maintenance. However, you can get a mortgage for such a home if you go for an FHA 203K renovation loan. Basically the mortgage would include the purchase price and the cost of renovations and repairs as long as the total does not exceed the 'after fix up' value of the home. It is an excellent product and a good way for buyers to get a decent home at a very good price.
0 votes Thank Flag Link Fri Dec 9, 2011
Yes, owning a home is possible depending on your market area you can own a home with little to no money down if you qualify utilizing the USDA loan program. Contact a local Realtor who will be able to help you with the details and put you in contact with a lender.
0 votes Thank Flag Link Fri Dec 9, 2011
Hi Amar,

Yes, you can. With as little as 3.5% down you can apply for an FHA mortgage. SONYMA offers up $15,000 of downpayment assistance, which they forgive the buyer after 10 years of living in the property. As for the closing costs, you can sometimes add them to the purchase price (as a seller's concession), so you can finance them in your mortgage, instead of paying them out of packet at closing.

Most foreclosures do need some work, but some are in a move in condition - it all depends.

Hope this helps. Good luck! Let me know if you need any help in finding a house.
Web Reference: http://www.718forsale.com
0 votes Thank Flag Link Fri Dec 9, 2011
There are Loans and Programs out there that probably help you.
There may even be State and Local programs that only your local Realtor and Lender have access to.
YES, almost all FORECLOSED homes are in need of some TLC; many need major repair:
Many homeowners are vindictive when they leave and I've seen holes in the walls from a foot, missing light fixtures, stolen stove and even toilets and water heaters.

Talk to your Agent and your Lender about Rehab loans piggy-backed on your Loan.

Good luck and may God bless
Merry Christmas
0 votes Thank Flag Link Fri Dec 9, 2011
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