Kathy, Home Buyer in Portland, OR

I need a creative way to get my down payment. Can afford the monthly payment, just no savings.?

Asked by Kathy, Portland, OR Wed Jun 27, 2012

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Corri Klebaum, Mortgage Broker Or Lender, Clackamas, OR
Thu Jun 28, 2012
There are a few more pieces to your puzzle and as stated below many options for financing with 0% down or gifted funds. Find a trusted mortgage professional in the area who can meet with you and help you fit it all together.

Best of luck!
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Sally Mehalo…, Agent, Happy Valley, OR
Wed Jun 27, 2012
Hi Kathy,

I'm working with a couple of buyers now who have good credit and the income to qualify, but do not have money saved for a down payment, or to cover their loan closing costs and pre-paid expenses. Several other agents have mentioned USDA, VA, Oregon Bond, and the Key Bank CRA loans. These options all offer no-down-payment programs, but a buyer must meet the program requirements to be eligible. To cover the loan closing costs and pre-paid expenses, a buyer can request that the seller contribute toward these costs.

As rents have continued to rise, and home prices and mortgage interest rates have come down so much, a couple of my clients who are now renting, will actually save money each month when they buy a house in their price range. This is based on their payment+interest+taxes+insurance (PITI). Of course, repairs and maintenance that come with home ownership are an added expense, so be sure that is something you can handle as needs arise.

The first step is getting pre-approved. I'd be happy to recommend a few reputable lenders.

Best wishes!

Sally Mehalovich, Principal Broker
Amerivest Realty
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Tom Inglesby, Agent, Portland, OR
Wed Jun 27, 2012
The American Dream program has a no MIP insurance which saves over $100 a month in payments and you can get up to $3000 towards a 3% down. But you need to save some money get a second job move in with some one to save on rent. Good luck. Tom Inglesby
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Marvin Von R…, Agent, Tigard, OR
Wed Jun 27, 2012
There are SO many ways of making spare money.Carla asked 'how much' do you need---an important question. Is it realistic to think you can makeas much as you need within the timeframe of your goals? Also, WHY do you want to buy? What type of property and what are your plans? How long will you live there?

You can do everything from selling your gold crowns to paper routes. Work for at home elder care companies. Sell avon, herbalife, vemma, fuller brushes, etc.

Spend less on coffee, etc.

This may not be the best time for you to buy. I risk being tarred and feathered but believe that we have more than 10% drop left in values in general. Rates are amazingly low but they wont be going up soon. Dont listen to the scare tactics of lenders on the radio.
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Carla Muss-J…, , Portland, OR
Wed Jun 27, 2012
You don't mention how much down payment you need. Of course, having a down payment is a good thing, but it's all price-point specific. Are you pre-approved for a loan? That's the first step Kathy. You have GOT to find out what you can borrow. That will get the ball rolling on the other issues associated with buying a home. Your down payment will be based on what you are eligible to borrow.

You mention you can afford the monthly payment. Does that mean you've already been to a lender and they helped you determine your P.I.T.I.?

Here's a thought, might be creative in this day and age: Save by not spending.

Since I'm not a financial planner, it's hard for me to make a statement on how anyone can save money, let alone for a down payment. Cutting back on non-essestials is a good start.

I mean . . . if you really want to be creative, how's that left kidney of yours working? ;-) I hear there's a market for that. But, hopefully, you don't have to be that creative in order to get in to a home and with time and saving you'll be good.

And keep in mind, the Oregon Bond program is a good way to start. However, if you don't have any savings, you should, even with 0-down loans. You have to have a nest egg my dear. At least 6 months of reserves just for your own peace of mind. Buying a home requires thought and maintaining a home, paying taxes, hazard insurance, are all incidentals to being a home owner. The monthly payment is one thing . . .
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Lana Lavenba…, Agent, Grants Pass, OR
Wed Jun 27, 2012
You may be able to get a 100% loan - and then ask for seller to pay closing costs. Why dont you check with a lender to see if you have enough money to make it happen.
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Priscilla Be…, Agent, Salem, OR
Wed Jun 27, 2012
Kathy, the Oregon Bond program has funds available right now if you qualify with income and family size guidelines. On an FHA purchase, the down payment is 3.5%, but the funds can be "gifted". as Margery noted, the USDA program is 100% financing, but you'd need to purchase in an area outside the Portland metro boundaries. Do you have anything you can sell or pawn? On a $200,000 home, for instance, your FHA down payment would be $7,000. Or, if you can save $700 a month for 10 months, you'd have the money. Or if you got a 4-hour, minimum wage job for 20 hours a week, you could make another $5-600 a month and could save up more quickly that way, too. Do you get a tax refund in April? Another way to bring home extra money for savings every month is to change your withholdings. Shop your cell phone carrier and save money that way. Also, shop your auto/renter insurance; most people can save $100 a month by doing that. If you aren't already working with a lender to get you prepared for a home purchase, contact Bill Morris of Pinnacle (503) 409-5421. He's the lending arm of my group. We have free monthly seminars teaching people about how to get out of debt, including a home mortgage, and build wealth through real estate. He can point you in a good direction to helping you attain homeownership! My best to you.
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Marge Bare, Agent, Portland, OR
Wed Jun 27, 2012
Unfortunately Kathy, there's not a ton of options but there are some. I would guess you've exhausted any options such as borrowing on a 401K? that's usually allowable for the down payment on a mortgage. There's some programs that allow you to buy without a down payment, but there are many restrictions on condition of home and sometimes location. Suggestions would be Key Bank, whom offers 100% financing, or USDA. USDA would be a "farm home loan" which is offered in rural areas, and restricts the location where they'll loan so you have to visit their site. I think Home Street Bank might also offer some opportunities. You can go to a short series of classes at the Portland Housing Authority where you can find out what programs are currently available, who has funding now, etc. as there are some community funding sources, such as down payment assistance program in Clackamas County, and I think Gresham has some funding as well. There's always "gift" funds from a family member or friend. Then all you would need is closing costs (which is generally another 3-5% of the purchase price) and that can sometimes be negotiated into the sales price.
It's like negotiating a maze sometimes, and if you're serious and ready to make a commitment of time and energy, it can be done! if it was easy, everyone would do it but many don't have the dedication to make it happen. IF you want it, there are ways if you can be flexible on area and price. I recommend that you find a lender you trust who can help you through the maze, as well as a Realtor who works with first-time buyers (like me!)
Lastly, there's a wonderful resource by my local Realtor association (hownw) where you put in the area where you want to live, and some other minimal info, and it will come up with a list of programs you might qualify for.... I would start there and I've put the address below. Follow the link and you might get some answers right away and a place to start your search for the right solution for you! I wish you the very best, and of course, I can get you all the websites and resources for the programs I mentioned earlier. Contact me directly and I'll be happy to help more. Best to you, Marge
Web Reference:  http://www.hownw.com/
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Jewel Stockli, Agent, Sandy, OR
Wed Jun 27, 2012
Nice to meet you! There are loans out there that don't require a down payment. I am not a Mortgage Broker, however I work with some great one, that can show you those options.
And then here is a great article I found here on Trulia about finding your down payment. Email me and I can send it. -Jewel K Stockli, Prudential NW Properties jstockli@prunw.com
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Marc DeSantis, , Portland, OR
Wed Jun 27, 2012
The USDA loan is a great option. VA loans also are 100% financing, but you or spouse will need to be a veteran. If you have a family member that is willing to help out you can use "gift funds" as a down payment.
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Linda Heinri…, Agent, Lake Oswego, OR
Wed Jun 27, 2012

The Oregon Bond program is a great way to go. This is generally funded every year, but the funds run out quickly, so if you are interested, I would explore the options soon. Here today, gone tomorrow as we say. Another option is to have a family member gift you the funds. Just be sure to have excellent documentation along the way.

Key Bank and USDA both have 100% loans if you or the home qualify. There are other options, depending on your individual situation, but I would suggest consulting with a good mortgage broker in advance. Then go shopping:) Let me know if you need any help.
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, ,
Wed Jun 27, 2012
Look into USDA financing options for your area. http://www.usda.gov
Contact me directly and I can recommend an agent in your area who has experience with this. With USDA financing you often do not need a down payment!
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