Can you buy a home with no down payment?

Asked by Emily Zeman, Saint Joseph, MO Sun Jul 29, 2012

We have good credit. Both my husband and I are over 750 on our credit scores. The only problem is we don't have a lot of money to use for a down payment but want to get out of renting. If there any way to buy a home with no down payment or is there some way that we can get a lone for our down payment? Thanks any advice would be awesome.

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Mary Sharp, Agent, Saint Joseph, MO
Thu Oct 25, 2012
With your credit score, YOU are eligible for an MHDC Loan, they offer a downpayment FREE as long as you stay in the purchased property for 7 years. So there is your downpayment. You have your agent ask the sellers for 6% in closing costs in the contract. Your home will cost you very little out of pocket and I will gladly tell you who will do these types of loans. Just contact me at meme_702@att.net and I will explain this to you and provide you a lender to speak with personally.

Mary Sharp
1 vote
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Jul 30, 2012
Good morning Emily,

Here is my primer on Minimum Down payments:

If the property you are purchasing is located in a Census Bureau designated "rural" are, AND you are a First Time Buyer, you may qualify for financing with 0 Down payment through the USDA program.

If you are a Veteran of the Armed Forces and you qualify for VA Guaranteed mortgage financing, then eligible Veterans are permitted to financing up to 100% of the purchase price of the home. That means no down payment.
http://www.trulia.com/blog/tcurranmortgage/2011/10/va_mortga…

For other HomeBuyers, Non-Veterans, the program for qualified Homebuyers with the lowest down payment requirement currently is the FHA or Federal Housing Administration. The FHA Insures mortgages made by banks and Mortgage Bankers and allows for a down payment of only 3.5%. http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

After FHA, Conventional financing through either FannieMae or FreddieMac allows for a minimum down payment of 5%. The Lender will need to obtain approval from a Private Mortgage Insurance company (PMI) to complete the loan approval.

The best way to have your questions about down payment and mortgage qualifications answered is to locate a local Mortgage Banker with at least 15 years experience. Mortgage professionals like myself who work for local Mortgage Bankers are Licensed as opposed to the registered status of sales people at regular banks. Thus you will receive a higher level of service which is just what a First Time HomeBuyer needs.

I hope that helps!
Trevor Curran NMLS #40140
0 votes
So you think that we should talk to a lone broker that isn't connected to a bank. We were just planing on going through our bank (Wells Fargo). If I am reading this right, you say that we could find a better mortgage outside a bank? Also thank you for your good information about the downpayment stuff.
Flag Mon Jul 30, 2012
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