Home Buying in 92105>Question Details

Mark M., Other/Just Looking in 92115

i am looking to purchase a foreclosed property, but have no money for the downpayment and my credit is not

Asked by Mark M., 92115 Wed Aug 13, 2008

very good. Would i still be able to purchase a property?

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Take Catherine's advice at your own peril. I am not wealthy or an elitist, but I am a realist. There are no shortcuts to get you where you want to be without paying high interest rates and putting your finances at risk. Hopefully you can afford the home in question, but I still feel you will be better off working on your credit first.

BTW Catherine, I work hard and take care of my family also (not that that somehow entitles a person to a loan). It also took me about 10 years to save up the down payment on my first house. Home ownership is not a right, and you are not helping anyone by encouraging people with a poor track record of debt repayment and saving to take on more debt than they can likely handle. If Mark has the income and discipline to fulfill a mortgage obligation, he probable also can take the first steps of improving his credit and building some savings.
1 vote Thank Flag Link Thu Aug 28, 2008
all what you need on fico score its 580 and check for FHA rates visit this site http://www.amerisave.com/partner/rmaldonado
1 vote Thank Flag Link Thu Aug 14, 2008
Hi Mark,
If you can come up with 3% of the purchase price you may want to look at an FHA loan. FHA also allows the 3% to come as a gift from family etc. You may want to contact a lender you trust familiar with FHA loans. In the meantime I would concentrate on imporving your credit score and saving a little cash for a downpayment.

Good luck, Filly
1 vote Thank Flag Link Thu Aug 14, 2008
An fha may be the way to go. You better hurry if you want to use a dpa program like Ameridream. They are going away on October 1.
1 vote Thank Flag Link Wed Aug 13, 2008
First off ignore Catherine and Steve, their answers are not helpful.

I'm in a similiar situation, I don't have a down payment saved up. I'm still in the process of getting a loan however from a responsible lender. People who say you need 10% down and good credit are just elitists they only want the wealthy to have homes. Fortunately there are programs out there designed by people who understand if you work hard and take care of your family, you probably don't have enough extra to stash 40,000 in the bank. It doesn't mean you don't deserve to enjoy the same dream of homeownership as everyone else.

Just look at your finances and see if you can actually afford the payment. Ignore the gimmick ads in the pennysaver and elsewhere (that claim low payments for high amounts) a real loan will run about 2000 a month (for around 250,000) and a regular lender will expect twice that in income. If those numbers are out of your ballpark then you might want to look into a mobile home or condo. If you pay more than that in rent now, go down to Wells Fargo and see what they can do for you, I recommend Linda Collier she will give you the straight truth (and she knows the programs).

In California, there is no guarantee when prices might go back up, so if you find a lender who will work with you and you can make the payment go for it. Good luck!
0 votes Thank Flag Link Mon Aug 18, 2008

You could also look into Nehemiah. Click on the link below.

0 votes Thank Flag Link Fri Aug 15, 2008
If you have some money saved as down payment but your credit has been damaged etc. Yes, you can purchase a home. No credit checks necessary. June Reyno for details and further discussion @ 858-361-2399, San Diego, California or E-mail: june_reyno@sbcglobal.net with your information and location of interest.
0 votes Thank Flag Link Fri Aug 15, 2008
Maybe. But consider the very real risk of price depreciation and/or your ability to repay the loan. The fact that you don't have good credit nor have saved a down payment would make you a risk that many will no longer take (or should ever have taken imho). You didn't ask, but I hope you consider the following advice: In my opinion you have no business buying a home until you can make a minimum 10% downpayment. The type of financing you seek is largely responsible for the current credit crisis, and the people attempting to sale you their services here do not necessarily have your best interest at heart. My advice, like a few others here, is to save your money for a real down payment and work on your credit history. This should qualify you for better terms and put you on sounder financial footing when you are ready to be a homeowner. Putting off the gratification for a little while now may save you a lot of heartache later.
0 votes Thank Flag Link Thu Aug 14, 2008
Add a family menber or friend to the loan
0 votes Thank Flag Link Thu Aug 14, 2008
thanks to everyone your answers were all very helpful i will look into it some more and see what else i can do
0 votes Thank Flag Link Wed Aug 13, 2008
Rob gave you great advice. You might also look to partnering with someone else to buy together. Your appreciation may be minimized, however, so will your risk. I have a basic partnership agreement I can send you for free and I can also suggest some ways to find potential partners. You might both want to live there or one just uses it for equity sharing. If you need more information, let me know.
0 votes Thank Flag Link Wed Aug 13, 2008

Actually there are options out there. If you fall within the income limits, there are some terrific down payment assistance and grants offered by the City of San Diego, County of San Diego and State of CA. I usually combine these programs with a FHA 30 year fixed mortgage. FHA does NOT require you to have a high credit score to get an excellent 30 year fixed interest rate. I would have to take a look at your current income, job history and credit report to design a low or no down program for you. Zero down is possible.

And if you happen to be active military or a veteran, VA and CalVet still offer 100% financing.

Warm Regards,
Rob Chomentowski
Sr. Loan Officer
Affinity Financial
0 votes Thank Flag Link Wed Aug 13, 2008
No...Probably not. In order to get a loan right now you need at least 10% down and good credit at least in the 700's is what a lot of my lender friends are saying. I would recommend working on your credit score and trying to save some money. Or if you are a veteran the VA loans require 0 down payment. I currently helping a client who has one of these loans it has worked very nicely.

Hope this helps...Catherine Barden, Realtor
0 votes Thank Flag Link Wed Aug 13, 2008
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