Are there programs to help a disable person with a down payment on a foreclosure home?

Asked by C_nut62, Austin, TX Mon May 28, 2012

I'm interested in a bank owned home located in cedar park price range $235,000. How much would I need for a down payment and closing cost. What steps do I need to take in this process.

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Don Groff, Agent, Austin, TX
Tue May 29, 2012
Hello,

I would be happy to assist you there. I am a Realtor and Mortgage Broker and I live and focus my work in Cedar Park and NW Austin markets.

There are several different options to reduce your down payment. One is if you are vet or are buying in a USDA approved area you can buy with zero down. Most of Cedar Park does not qualify for USDA financing. You would have to look more in Leander if you wanted to qualify for a USDA type loan.

Your next option is a HUD foreclosure that can be had with as little as $100 down. There are also various other programs like HomePath (property specific) that you can use if the property qualifies.

Here is one way to reduce your cash to close. Use a broker like myself. Here is why. I am set up with all of the major lender like Wells Fargo and many others. Because I am set up at the wholesale level my fees and rates are much better than going directly to those same banks.

Here is an example using your purchase price.

Let's say you bought this home and used a traditional FHA loan. You would need to bring 3.5% for your closing costs. Your down payment alone would be $8,225.

Now on top of that you need to pay or roll in your lender fees. This can total another $5000. I can offer you a lender credit currently of $6,000 to cover all of your title and lender fees at the very same interest rate a bank can offer you without out giving you that credit.

Banks fees are also much higher so if you do not need or want the credit I can always offer about .375% lower interest rate still with less fees than the bank can offer. This is always the case. You also do not pay any origination points for either option. My total lender fees are always much less than the same retail banks.

So using a broker like myself you can save at least $5,000 to $6,000 in closing costs without having to roll it into your new loan. So when you make an offer on a home you don't need to ask for those extra fees which greatly inflate the asking price you need to offer.

If you have any questions or would like to discuss this further please give me a call or email me.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes
Linda Scott, Agent, Austin, TX
Tue May 29, 2012
A good person to ask would be Ida Edwards a Loan Broker, she is up on on the latest loans and should be able to help you.
Idea Edwards 512-423-4010
iedwards@austin.rr.com
0 votes
Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Tue May 29, 2012
If you are a veteran, the 100% VA loan would be your best bet. FHA only requires 3.5% down, and there are down payment assistance programs for you if you meet the income guidelines. FHA sellers can currently pay 6% towards your closing costs and prepaids. So much depends on your credit score and income. I suggest you contact a licensed mortgage loan officer to discuss prequalification. It's too complex for us to explain on this site.
Good luck!

Barbara Coker
NMLS#228545 Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
Web Reference:  http://www.thecokerteam.com
0 votes
Thank you, Barbara, for that concise answer!
Flag Tue May 29, 2012
Carla Pennin…, Agent, Georgetown, TX
Mon May 28, 2012
You can also email me directly - Carla@CarlaPennington.com. I'm in Georgetown. Check out my website CarlaPennington.com to learn a little more about my service. I would love to help you!
0 votes
Carla Pennin…, Agent, Georgetown, TX
Mon May 28, 2012
I can help you bid on the foreclosure. That can be done online probably. As far as the financing, again I have contacts who would be happy to help you explore those options. If you'd like to call me tomorrow, I can explain further. My phone number is (512)635-2117. Typically you need 20% down, but the finance people are the experts there! I can look the property up for you tomorrow and direct you or help you. No cost to you for my services, and no pressure I promise! Just a desire to help!
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