Home Buying in New York>Question Details

Karina Chu, Home Buyer in New York, NY

Can I buy a place without putting a down payment? I can afford monthly payments and I am looking to move out

Asked by Karina Chu, New York, NY Thu May 22, 2008

quickly either in brooklyn or in queens

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You will need some down payment even with FHA.

Here are other options:

Seller financing: Talk to sellers and see if they will finance the purchase-- in this market, you may succeed, especially in places like Queens, Bklyn, or SI.

Rent with option to buy: A portion of your rent goes toward the downpayment and when you do close under the option (your option), you get credit for the down payment and use bank financing for the rest.

New construction: Some builders, stuck with inventory, may also offer no money down options.

Pre-foreclosure: Negotiate with the seller (and lender): You may be able to assume the mortgage and pay any seller equity over time via a promissory note or second mortgage.

Don't give up and you will find something.
0 votes Thank Flag Link Tue Jun 3, 2008
I agree with most of the previous responders. FHA is a good alternative and it is important to have the seller contribute to your closing costs. Our firm is a direct lender and we also obtain grants to cover your downpayment. To obtain this financing you must have a good credit history and must demonstrate the ability to repay the loan. We will establish a sensible limit on the amount that you can borrow.
0 votes Thank Flag Link Fri May 23, 2008
If you are a first time home buyer, you qualify for down payment assistance and there are other loans such as USDA and FHA which allow you to 100% finance. Another option with so much inventory on the market is to find a home you love and ask the seller to pay for your closing costs. It is possible to get into a home with zero money. Just be careful that you read the fine print. You want a fixed rate not adjustable and stay away from baloon loans. Connect with a good lender and work with a realtor who specializes in first time home buyers.

Good luck!
0 votes Thank Flag Link Fri May 23, 2008
Karina,

You'll need money down. I don't care if someone comes on here and says you don't - you do. Myke is right - FHA is a great way to go - low down payment, 30 year fixed.

However - with FHA comes higher payments (because you're only putting 2.25% down - minimum - ). You'll also have to have - I think it's - 2 years of work history, all your w-2's and prove that you'll be able to handle the payments.

FHA is and can be very flexible as well - they've really made it a bit edgier to match today's marketplace and most mortgage consultants and people in the industry are touting FHA loans.

I highly recommend sitting down with a Mortgage Consultant (not a broker - a banker/direct lender). I can definitely assist of course (not self promoting - I'm a realtor, not a mortgage consultant).

From the SOUND of your post/question - FHA really may be the way for you to go, but need more information.
Web Reference: http://www.tommcgiveron.com
0 votes Thank Flag Link Fri May 23, 2008
these days - I wouldn't expect it to be very easy to find.

What you can do however - is use programs such as FHA loans that will allow very low downpayments (3% instead of 20%). These programs also allow your seller to contribute up to 6% to your up-front costs and fees. YOu have to be careful doing that, as typically what ends up happening is you're just financing those costs by offering the seller more money in exchange for that cash back at closing.
It can get sticky going that route depending on how the numbers sort out in the end. Your better bet is to go for at least a small down payment.
0 votes Thank Flag Link Thu May 22, 2008
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