Home Buying in Naples>Question Details

Gledson, Home Buyer in Naples, FL

Is it possible to buy a duplex with no money down , and is it bette if i can ? thanks

Asked by Gledson, Naples, FL Sat Apr 26, 2008

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Hi Graham,

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Leslie Taylor
Trulia Voices Moderator
0 votes Thank Flag Link Tue Apr 29, 2008
Hello Gledson,

It is possible to buy with 100% financing, but you have to have to have a very good credit history and score. You also will need money for your closing costs, but there are some options for assistance. You should check with a good local Realtor who could refer you to a Mortgage broker or bank, who are familiar with affordable housing programs that are offered in Naples. These programs will award qualified recipients with down payment assistance that, in certain cases, will not have to be repaid. It is a grant to assist you in buying a home with a reduced mortgage payment. In addition to the grant, perhaps you could find a duplex or home where the Seller would be willing to assist you with closing costs. Your Realtor and mortgage broker will know how to structure the contract to make it possible for you get the home for no money out of pocket, if you qualify. Ask your friends, family or acquaintances for a recommendation for a Realtor or mortgage company you could call. If you can't find a Realtor or mortgage broker, contact me by e-mail and I will find a Realtor for you in your area through the RE/MAX network, who is familiar with this type of program.

Good luck!
Web Reference: http://www.DianneScott.com
0 votes Thank Flag Link Sat Apr 26, 2008
Hi Gledson
If your going to buy anything you need to analyze what are you trying to accomplish. If you own a business an need the write off and have another source of income to pay for any expense's or lost rentals due to a non-paying tenants. That could be one situation to consider it. When ever you buy anything, especially for investment you want to check your rate of return on investment. When you buy with no money down the walk away factor is very high and any cash flow derived from the business is profit with no investment. Most investors who chose this method of investing have short term gains and long term losses. The current foreclosure problems we have are people who over borrowed without any way of paying debt if the market turned around. A duplex is an investment and when it starts costing you more then what you paid,
is it a good investment or a bad investment. Having done the above and suffered through market shifts if you do not have the cash on hand you will be on the negative side of ten years of no credit. Do not always look for a something for nothing scenario. Make a plan as to what you are trying to achieve. Cost the plan out, and figure out an exit strategy, in the event it isn't working the way you planned. Then find a property
that is profitable, in a good area with a positive cash flow. Put enough money down to ensure if there is a loss of rents in any given month you will be able to cover the short fall. I work with a lot of investors they almost all pay for their investments with cash, their success in what they do isn't an accident it was a well thought out plan. They can wait out any change in the market. That is there plan. I encourage all my clients to make a plan if they don't have one I help them work through one. My advice make a plan, find a property, cost it out , fund it, put six months of expenses in a separate account for emergencies. Sounds like a lot but true success isn't cheap. Hope this will help you
Brian "Skip" Caron a real estate professional.
0 votes Thank Flag Link Sat Apr 26, 2008
liquid assets? montly budget? credit score? oh my! sounds like a good snapper for Suze Orman!
0 votes Thank Flag Link Sat Apr 26, 2008
Hello Gledson,

In a buyer's market, anything is possible. The best places to start looking are the real estate ads in your local newspaper and "penny saver publications"(Thriftly Nickel, etc.) and the free real estate magazines. Reading the for-sale-by-owner ads in the newspapers will give you a feel for the areas where you might find a place like you want, that offers owner financing, or a lease-purchase option, which is usually a no-to-low downpayment situation.

In any case, if you are a veteran, you can possibly qualify for a a 0% down VA loan. A local mortgage company (look in the local yellow pages or ask the chamber of commerce for a member list) can give you the best advice on any loan programs they have that might offer low down payments. They will also size up your fianancial situation real quick and let you know how much you can borrow for a purchase.

In my personal opinion, it is not generally "better" to go for a zero downpayment situation, although there are certainly exceptions. When you put zero down, you will possibly lose some of your price-negotiating power, might pay a higher mortgage interest rate, and have no equity.

Paying something down, as much as you can afford, assures the seller and the lender that you are serious about home ownership, will eliminate the expense of mortgage insurance (if the downpayment is at least 20%), and will create a real investment that you will want to protect. And, after all, what your gaol should be, is to get your home paid for. This is done like eating an elephant, one bite at a time! One dollar extra, whenever you can pay it.

Hope you get your place and enjoy it.

Dan Therrell
Fairhope, AL
0 votes Thank Flag Link Sat Apr 26, 2008
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