We currently own a home that we rent out. Our credit is good, but we would not have a down payment. Can we still get a mortgage?

Asked by Sschultz2384, Anchorage, AK Fri Apr 13, 2012

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Derek Huit’s answer
Derek Huit, , Anchorage, AK
Sat May 12, 2012
There is two programs that allow for zero down payment. The VA loan program and USDA rural Develpment program. All others loan products require that you do need a down payment. Depending on the program 3.5% for FHA, and 3% or 5% for Conventional. And of course 20% down saves you money on the mortgage insurance. There are many options for mortgage insurance and different cost between lenders As a Senior Mortgage Loan Originator with Alaska USA Mortgage i would advise shoping around for the best investment options that are available .

Derek Huit
NMLS Unique Identifier #203980
Senior Mortgage Loan Originator
Alaska USA Mortgage Company
Mortgage License #Ak157293
500 W 36th Avenue #110
Anchorage, Alaska 99503
Phone:907-261-3426 Fax 375-5095
Cell 244-9368 Toll Free: 800-737-3033 Ext. 3426
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Uzzil Batucan, Agent, Anchorage, AK
Mon Apr 16, 2012

Please contact me if you need help. Allow me to help you and get connected with a great Lender ... if you need one.


Uzzil Batucan@ 907-250-9196
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Uzzil Batucan, Agent, Anchorage, AK
Mon Apr 16, 2012
Hi Schultz,

Your family or even friends could help you with your down payment by providing a gift letter to the Lender. For VA loans, you wouldn't need to come up with down payment, since it ZERO DOWN, but there are closing costs that you need to pay. With the help of your Real Estate professional, and subject to Lender's requirement, closing costs are allowed to be negotiated and be paid by the Seller at closing.

Go get pre-qualified and talk to your Lender.


0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Mon Apr 16, 2012
Hi Sschultz2384,

VA (Veterans Administration) loans do allow 100% financing. Next in line is FHA, with 3.5% down, and contrary to a previous answer, you may be gifted the entire 3.5%, and accept up to 6% seller concessions. It is true you need $500. in the deal of your money, however, that 500 can pay closing costs, UFMIP, or any other fee associated with your purchase.
I hope these comments help, best wishes in your new home purchase.
We offer free, no obligation analyses to see what programs you might qualify for. We also offer downpayment assistance grants through the FHLB in Atlanta nationwide.

Here is a link explaining this product: http://corp.fhlbatl.com/sc/ahp/first-time-homebuyer.html
It is a 4:1 match up to $5000. If you stay in the home 5 years or more, you do not have to pay the grant back.

American Bank, FSB is federally charted and legal in all 50 states and 7 territories. We look forward to serving you. Jim, 703 615 4675
0 votes
Debbie & Doug…, Agent, Anchorage, AK
Fri Apr 13, 2012
Yes if you can qualify for a VA loan. That is the only program that allows for zero down. All others programs you do need a down payment. Depending on the program 3.5% for FHA, and 5% for Conventional. And of course 20% down saves you money in the long run. I suggest talking with Kathleen Broquet at Wells Fargo, she can help set you on the right path to a new home.
0 votes
Katrina Bent…, Agent, Anchorage, AK
Fri Apr 13, 2012
Call a local lender and ask about what loan programs you can qualify for. Let me know if you would like contact info for that :)
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Michelle Boji…, , Farmington Hills, MI
Fri Apr 13, 2012
It all depends on your debt to income. Also depends on the Lender guidelines. If your tenant has been making the payments for at least 12 months and can provide proof, they will not hold the mortgage payment debt against you. You can obtain and FHA loan which requires 3.5% down in which only $500 of if has to be your money meaning the rest of the 3.5% minus the $500 can come as a gift from family.
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