Home Buying in 32408>Question Details

Jimmie, Home Buyer in Florida panhandle

Can I get a house nowadays with no money down?

Asked by Jimmie, Florida panhandle Wed Feb 25, 2009

My situation is that I have about $10,000 in debt I am currently paying on. I would like to buy a house and include enough extra in the loan to pay everything off. After that, I will basically have no financial liabilities to speak of. I am in my 40's and have never owned a home. I am currently renting. I have a good job I have had for over 10 years and take home just under $40,000. But I have no downpayment money or savings to speak of and my credit is not great. I am a US Navy veteran so I think I am entitled to a VA loan. I do have money in a 401k...maybe worth $20000 nowadays. How likely is it that I can get a home loan with no money down with these circumstances? Again, I will have no further debt once I get rid of what I have, so I will have sufficient funds to make mortgage payments. Thank You!

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Hello Jimmie, Unfortunately there are no lenders that will presently allow what I think you are proposing. That is to use money from the loan on the house you are buying to pay off existing debt. The good news is that if you have your VA elgibility you may be able to purchase zero down using you VA benifits and in fact may qualify to purchase with your existing debt load. The best bet is to contact a VA approved lender and see what you qualify for that way you will know exactly what your options are.

If for some reason your VA elgibility is not available you may be able to find a lender offering USDA rural housing loans whicjh are also zero down in qualified areas, For a detailed list of USDA eligibility check out the USDA website at : http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Good luck with your home purchase!
1 vote Thank Flag Link Wed Feb 25, 2009
Yes, yes, yes! To anyone wondering about 100% financing, One option for active or inactive military, you can apply for a VA loan, 100% financing and the government rolls in something called your VA funding fee so it can be financed over the life of the loan. If you are eligible for a VA loan, it's an incredible way to go. Make sure you use your USAA affiliation as they also at this time offer a rebate up to $3000. There is another program that is rural development housing which is also 100% financing, and you can roll in your closing costs. Many buyers think it's only those homes in "rural" areas. Panama City Beach, for instance, has many homes eligible for this 100% financing program. I work with many first time homebuyers and those are just two of my favorites. It is a great time to be a first time buyer! Finally, always ask your realtor or lender if that have experience in these loans. If not, I would seek out someone who can help you or at least educate you on all your financing options. Hope this helps.
0 votes Thank Flag Link Sat Sep 12, 2009
Don't be discouraged, there most certainly IS a way to do this if your credit is good. I just got a loan with the USDA (yes, it's a gov't loan). It provides 100% financing, NO PMI, and often your closing costs can be rolled in. The interest rate can't be beat either. The stipulations are 1. Your credit can't be shot 2. You have to purchase a "qualified" home. Where I live that covers just about every house, but that probably varies.

Just Google "USDA Mortgage" and look for a link that ends in .gov You will find all the information there. You will need to contact your local Rural Development office to inquire but there is a search feature there to find it.
0 votes Thank Flag Link Fri Jul 10, 2009
actually with the new rural housing loan you can get 100 % financing as long as the home quailifes and appraises for enough. Plus not owning a home previously you may quailfy for the $8000 tax credit available any question you can call me at 850-258-2470
0 votes Thank Flag Link Fri Jul 10, 2009
Sure sounds like you can to me. I recommend Rita Single @ Peoples First OR call 850-769-9999, which is Tyndall Federal Credit Union, ask for the mortgage department and talk to them about buying yourself a home. OR speak to a home loan officer where you bank I'll gladly accompany you, if you'd like.
If you have time you could speak to more than one lender, just to compare and hear more options.
I know of foreclosed homes that are now owned by the Office of Veterans Affairs and I bet you could buy one of those!
Talk to your lender! Call me if you need me in the mean time...850-814-3173
0 votes Thank Flag Link Wed Jun 17, 2009
Anything is possible! The scenario that I can think of is "buying" a property that is free & clear and is in need of major repairs. If the owner/seller has a good feeling that you would pay the house off in monthly or annual installments, repair and maintain the property- they may just consider such a proposal.

Lending institutions, are not so open inded- these days 20% invested is the norm.

Mott Kornicki, Broker/Associate
Aventura // Bal Harbour // Sunny Isles Beach
0 votes Thank Flag Link Thu Feb 26, 2009
Like both have stated below, 0 money down loans are all gone. There are some other programs like you said that you may be entitled to. I have a lady you can talk to if your interested in finding out more about VA loans and how much it would cost to close on a home. And, while your waiting to hear back from her, you can look around at all the homes for sale in Panama City Beach at the web reference below.
0 votes Thank Flag Link Thu Feb 26, 2009

Unfortunately, the days of 0% down and "stated income" are gone but not forgotten.
0 votes Thank Flag Link Wed Feb 25, 2009
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