Michelle, Other/Just Looking in Los Angeles, CA

Can I purchase a home without paying down payment even with a bad credit?

Asked by Michelle, Los Angeles, CA Tue Feb 17, 2009

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Dallas Texas, Agent, Dallas, TN
Tue Feb 17, 2009
NO unless you are rare exception to rule of less than .000001%

Lenders have changed policies where requires approx. 3.5% or more as a downpayment, contact your local mortgage broker review loans made available based on financial review, credit scores, debt ratio, employment history.

Owning a home you receive annual tax benefits, interest rates are low,
Web Reference:  http://www.lynn911.com
2 votes
David Chambe…, , Saint Petersburg, FL
Wed Feb 18, 2009
American Guardian Home Loans is a direct lender so they could do any type of loan they want but that doesn't mean it could be sold on the secondary market.

Most companies do not want to hold on to the loans that is why there are standard qualifications most of the time, they have to structure the deal so they can sell the loan.
0 votes
James Baxter, Agent, Encinitas, CA
Tue Feb 17, 2009
I would be interested in hearing more about the 100% financing from Crestico =).

FHA has 3.5% down - but the home has to meet FHA standards.
and if you are a teacher CALSTER has a 3% down with a 5 year 17% silent second.
I have a client that will be closing escrow next week with one of these deals.

Any competent lender would be able to go over the details of the different loan programs out there.

With having bad credit it will make it harder to get a loan. You will more then likely have a higher interest rate.
You can always structure your purchase contract on your new home so that you can get cash from the seller to do a point buy down so you can get a better interest rate on your home loan.

good luck
0 votes
Crestico Rea…, , Los Angeles County, CA
Tue Feb 17, 2009
You actually do might qualify depending on the City where you are looking to purchase your property and on how bad your credit is.

We just recently did a 100% Purchase transaction with a lender that we use.

His contact information is below.
Houtan Hormozian
American Guardian Home Loans
T: (949) 242-5215
T: (877) 242-5215
Web Reference:  http://www.crestico.com
0 votes
Alexandra Pa…, Agent, Montebello, CA
Tue Feb 17, 2009
Unfortunately all the 100% financing is long gone. You can do FHA financing but the minimum down payment is a 3.5% and your credit doesn't have to be that great, it is more a combination of debt vs. income. I suggest you talk to a loan officer my lender Al Rivera (al the loan guy) is very good. Give him a call (562) 587-5284
0 votes
Monique & Joe…, Agent, Beverly Hills, CA
Tue Feb 17, 2009
Hello Michelle,

I hate to be the bearer of bad news but the best program out there is the 3.5% for FHA loan. The closing costs can be credited from the seller but you will have to come back with a down payment. The other option would be to rent to own. Where part of your down payment is drawn from a rental contribution AKA lease option. Many sellers that haven't been able to sell their home may consider this option.

Good luck!


Monique Carrabba
Phone: 323.899.2900
0 votes
Hugo Torres, Agent, Arcadia, CA
Tue Feb 17, 2009
Not likely.

You may want to speak with a lending agent to repair your credit and a financial advisor to start a savings strategy.
Web Reference:  http://www.c21ab.net
0 votes
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