Home Buying in Dublin>Question Details

Jg, Home Buyer in Danville, VA

I am in a bit of a situation where we either have to sign another year on our lease or try to buy something

Asked by Jg, Danville, VA Sat May 10, 2008

by July. We have no money to put down but a very good friend who is a lender told me we don't necessarily need to put anything down. Is this the right thing to do or should we just stay put and try to save for a down payment? We really don't want to miss out on the prices being down. Any advise would be greatful.

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What so you mean when you say "Sorry but all indicators are not that dire. " Do you have any data to back it up? or you are singing the same ole song buy now nuy now!

You are accusing the poster of looking at a crrystal ball but you turn around and do the same!
5 votes Thank Flag Link Sun Jul 6, 2008

I personally would prefer to buy a home in an uptrend rather than a downtrend which we have now. I cant describe the feeling when you find out tha tyour house lost 10% of its value before you even move in. So my suggesting is to keep an open eye on the market and see where things are headed. Also please do read the news on the mortgage industry as there appears to be a flood of homes will hit the market.

No one can predict the bottom nor the top.

Check out the latest on Fannie May and Freddie Mac the largest lenders in the US and draw your own conclusions. With infalation, cost of goodsont he rise we will see a steep correction.

take care and enjoy the home buying process
1 vote Thank Flag Link Mon Jul 7, 2008
If you are able to finance via an FHA loan there are presently two different national non-profits that facilitate down payment assistance. Check with a local realtor and find out the FHA loan limits in your area, our FHA limit here in Sarasota Florida is $436,000 which in todays market is feasible to purchase a nice home.The option to wait for another year is gambling with todays low interest rates which could be
much higher, there is no telling what a year may bring. Try and continue on a month to month basis
if possible or look for a short term scenario, allowing you extra time so as to avoid making a hasty
decision. Check out these down payment assistance non-profit organizations( AmeriDream and Nehemiah ) and tell us how everything works out. Also check with your local gov't, many have assistance programs, especially first time buyers programs.
Make sure you check all the foreclosures and Bank owned properties in many areas there are substantial
values for those that do their research.
Web Reference: http://www.myclubrealty.com
1 vote Thank Flag Link Sat Jul 5, 2008
You can get FHA loan with 3% down payment, but you must qualify for the loan.
Do you have approx 3% in your IRA account or can some one gift you 3% of the sales price?

You are right, it’s an excellent opportunity to buy Real Estate. First time home buyers and investors have been waiting for!

If you like feel free to call me I have an expertise of both the Loan/ Finance and Real Estate

My cell 510-381-2105 or
Email CharoBhatt@gmail.com
Web Reference: http://www.HomesByCharo.com
1 vote Thank Flag Link Thu May 22, 2008
Hi Jg,

I would suggest hooking up with a loan officer to see if you qualify for an FHA loan. You can now utilize the Nehemiah downpayment assistance program with FHA. Nehemia provides for a 6% gift that buyer's can use for the 3% required FHA downpayment, putting the rest towards closing costs. Right now is a great time to buy. I advise buyers against trying to time the market. Start looking for a property that works for you.... if you wait for the bottom you will miss it and you are also likely to miss out on the property that's perfect for you.

If you would like more information on the FHA loan program used in combination with the Nehemia program, I would be delighted to put you in direct contact with the lender that I refer all of my clients to. She is certified in these programs and extremely customer service oriented.

I can also refer you to an excellent and reputable agent in your area. Having competent and forward thinking representation is especially crucial in this market.

Best of luck!!
1 vote Thank Flag Link Mon May 12, 2008
Jg, you are 12-16 months form seeing bottom in Danville area. If you have the means to save up a 20% down, do so! You will be happy you did! Best of Luck! The Coach
Web Reference: http://askPCR.com
1 vote Thank Flag Link Sat May 10, 2008
rent and invest the difference.......
you would be buying a falling knife if you buy today
0 votes Thank Flag Link Thu Jul 17, 2008
To avoid making the mistake that some made in past few years don't over extend your finances so that you'll be buried. Also don't assume that you will have significant equity growth in the next few years. If on the other hand you have steady employement with good prospects for stability and want to take advantage of the tax benefits and other benefits of property ownership now is a good time to buy.
In many of the hardest hit areas like Sacramento and Merced investors are buying multiple properties. Pressure in the future will come from employment figures and the price of commutting. Property closer to employment opportunities will be made more valuable.
Each situation is different and you would do well to talk to your accountant and find out what the tax consequences would be for you.
I hope that doesn't come off as too Pollyannaish for some of the negative nabobs that are posting.
0 votes Thank Flag Link Mon Jul 7, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
Talk to a financial advisor or a CPA and get the facts about the friends offer. Look closely to see that you can afford the payments well into the future and are not banking on anything that you can't control. If you both lost your job or decided to move for a better job it cost about 10% of the sale price to sell. With no equity you'd be stuck.

The Coach,
Jg, you are 12-16 months form seeing bottom in Danville area. If you have the means to save up a 20% down, do so! You will be happy you did!
Where did you buy your crystal ball?
Can you use it to predict what is the next pitch too?
Sorry but all indicators are not that dire. Some forces are still needing to be seen which direction the economy will take but it isn't that clear that you can say don't buy for a year!
0 votes Thank Flag Link Sat Jul 5, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
As the others here point out, there are a variety of programs that can get you into a house with little money out of pocket. On the other hand--though I don't know the Danville economy (though Erik apparently does, and his advice matches mind)--there's still plenty of time left to buy before prices start to rise. Don't feel rushed into buying now, if you're not financially ready to do so.

Hope that helps.
0 votes Thank Flag Link Thu May 22, 2008
Don Tepper, Real Estate Pro in Burke, VA
In addition to the Nehemiah national programs, most cities in the Bay Area have their own specific programs. I have several clients who are in the process of completing the Oakland Down Payment Assistance program right now. It is very easy, you just attend the classes to find out how much you qualify for and then work with a loan broker from there! You can check out the City of Oakland program for reference at

Get off that rent treadmill and grab your piece of the pie, when you look at your net worth after one year of home ownership, you won't regret it! Best of luck to you in your home search!

0 votes Thank Flag Link Thu May 22, 2008
Back in February 2008, there was a Time article titled "Ignore the Headlines". This i the link http://www.time.com/time/magazine/article/0,9171,1713483,00.html

The hardcopy version had a chart that shows what one's payments would be to wait while prices of homes drop further (and the interest rates go up, too), or to take the plunge.

I have three clients who are in the same position as you are. All of them want to take advantage of getting in the market while the choices are many, and the market favors the buyer. They're tired of moving (one client said the house they're renting is being sold so they have to move; another will need a tax break). So they're eager to move forward on buying a home.

Your friend, the lender, will have access to so many loan programs. Ask him about the Nehemiah Program and see if this can apply to you since you have no money for a downpayment. Here's a link to the guidelines of the program. http://www.getdownpayment.com/pdfs/guidelines.pdf

Good luck!
0 votes Thank Flag Link Sun May 11, 2008
Hi, I think that you should try to get a loan aproved first, so then you know if you can finance 100% or no and know how much you can aford. After you have a aproved loan, you can look for the place that you want and see if the payments will be in the same range is the leasing. If is. I will say buy it! Will be a saving and a investment, in the future you can get your money back with some extra! Good Luck!
0 votes Thank Flag Link Sat May 10, 2008
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