Rent vs Buy in Haight>Question Details

Alison Hillm…, Other/Just Looking in San Francisco, CA

I’ve seen these "No Down Payment" plans on late night television and want to know if they are real or just a scam?

Asked by Alison Hillman, San Francisco, CA Thu Jan 24, 2013

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Donald Mituzas’ answer
As already mentioned, their are options for veterans with the VA loan program. Although I'm a real estate broker and not a mortgage broker, I believe these loans come without PMS which can be a big savings.

There is also a USDA loan product that can be no down payment, but these loans are not in all areas. You can check a specific property address to see if it qualifies at http://eligibility.sc.egov.usda.gov/eligibility/welcomeActio… There are also income limitations on these loans.

I hope this helps answer your question.
Don
http://www.nyhomeseller.com
1 vote Thank Flag Link Thu Jan 24, 2013
BEST ANSWER
I would say that most are a scam. I still see agents advertising like that.

The primary 'no money down' option is for Veterans with the VA. There are some zero down loans tied to rural areas ...

For most folks however, the easiest way in is through FHA...these loans require 3.5% down...and it's still a good idea to have some of your own closing costs, as well as some saavings.

Here is the link to the FHA to learn more: http://www.fha.com/
0 votes Thank Flag Link Thu Jan 24, 2013
Hi Alison,

Great question. The people in infomercials make a lot of money, but not in real estate. They are in the business of selling books, plans, seminars, etc. It’s easier selling you those crazy schemes than it is for them to actually do what they are advocating in their programs.

If it was so easy, they would be buying real estate that way, not putting out infomercials. Consistently making money in real estate requires a lot of hard work and a lot of hours. It isn’t a “get rich quick” scheme, though sometimes the market turns at just the right moment and you can get lucky enough to make a quick buck.

As others have said, unless you are a Veteran, FHA loans require a minimal 3.5% down to purchase. Feel free to contact me if you have additional questions.
0 votes Thank Flag Link Sun Jan 27, 2013
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