As Janna and Suzanne together have indicated, you certainly have financing options in order to buy a home. USDA's 0% down program awesome for 1st time Buyers; however, the location of the homes may not be the most convient (see link below); however, FHA's minimum 3.5% downpayment requirement ($7K) is a great option for those buyers who have not amsassed the conventional financing standard of 20% down ($40K).
Regarding the 0% down USDA program, see the following link to find the areas NOT in the program:
There's a right way and a wrong way to go about buying a home.If you are serious about making an informed decision regarding your financing selection first obtain a â€œTrue Pre-Approvalâ€ so you absolutely know the price point you can afford. Moreover, understand the numerous benefits of taking this most important step: http://www.Steven-Anthony.com/GettingStarted
Regarding where to have your Pre-Approval performed, while there are occasional exceptions in service level; I would recommend avoiding the Retail banks for your Pre-Approval. Please see:
"Retail Banks vs. Mortgage Broker/Bankers"
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Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
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The best thing to do is talk to a local mortgage banker to discuss your options. Basically, once you get past the 3.5% mark it's what you have saved and are comfortable paying. You want to make sure you have a monthly payment you can afford also. So, you may want to make a bigger down payment to keep the monthly payment low. Or, you may find a home that needs a little upgrading and prefer to use the money to do the upgrades. It's really a matter of choice.
P.S. I guarantee you'll get a TON of random answers on here tomorrow, etc.. The best thing to do is to call a professional and get a game-plan, rather than random advice from people who really don't know your situation. Best of luck, Michelle!
Horizon Real Estate- Rancho Cucamonga