I was told by another Realitor that first time home buyers do not need down payments, is this always the case?

Asked by Hillyer, Streator, IL Mon Mar 20, 2017

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65
Ion Lacatusu, Home Buyer, New York, NY
Fri Mar 31, 2017
I want to buy a home but everyone wants down payment and I don't have the down payment
0 votes
Pam, Home Buyer, Schaumburg, IL
Sun Mar 26, 2017
Illinois has a first time homebuyer program that gives you the down payment. I am a Loan Officer and have done many of these loans. You do need to meet certain eligibility requirements, income and area come into play as well as a credit score. If I can help, please email me at pam.schillo@avenuemortgage.com
Pam Schillo, Senior Mortgage Loan Officer, NMLS#587247.
1 vote
I am not in Springfield, OR. I am at the other end of the state in Rogue River. I have no idea where this site got the idea I live in Springfield.
Flag Sun Mar 26, 2017
If I have a mobil home does that eliminate me from any first time buyer perks? I need to get the heck out of this place and don't have much for a down payment.
Flag Sun Mar 26, 2017
I am looking for a home , as a first time home buyer , but dont know , if i can purchase one my name is Shelia McMullen email is bethmcmullen6@gmail.com
Flag Sun Mar 26, 2017
Jennifergras…, Home Buyer, Carmichaels, PA
Fri Mar 24, 2017
The only loan I know of that requires no down payment is the USDA Rural Development Loan. I know because I have it. The catch is that the home you purchase has to be in an eligible rural area.

As for someone above stating "if you can't afford a down payment you can't afford to own a house" sorry but that's the most idiotic thing I have ever heard. I paid $1100 in rent per month. We purchased this home almost 5 years ago for $119,000 with no down payment with the USDA direct loan. I have a 3.125% interest rate on a 33 year mortgage. I pay $714 a month which includes my mortgage payment, property taxes and homeowners insurance. I can't afford to NOT own a home! Paying $1100 for a tiny apartment with no humanly possible way to save money is like spending your entire life just floating instead of attempting to swim!
35 votes
So true. You should, however, try to save some money for emergencies that inevitably come up. Thanks for sharing your experience.
Flag Mon Mar 27, 2017
Thank soooo much for posting this information... I had no idea this even existed:) xoxoxo
Flag Sat Mar 25, 2017
Thanks you give us renters hope!
Flag Sat Mar 25, 2017
Absolutely and this is so true.
Flag Sat Mar 25, 2017
Jennifer, your answer has renewed my hopes to buying a home. I am a Veteran, senior, and would-be first time home buyer. I am disabled, but am still fighting for VA compensation. I receive retirement from a couple places---very low amounts, but, if own a home, can more than pay what you pay and have some left over to live on. My credit has gone down since an injury left me unable to work and unable to pay a couple bills. I am paying $1,850 rent for the same house for 12 years. Can that cancel out the bad credit--showing I have paid $1.850/month rent for 12 years?
Flag Fri Mar 24, 2017
Jan, , 90404
Fri Mar 24, 2017
That realtor is probably trying to lure you into some scheme for his own enrichment. So glad you are here and asked..

If you don't have a downpayment, you can't afford a house. Start saving your money. Even after you buy, there will be plenty of maintenance to soak up your cash. There are always downturns in the cycle. Save your money and wait for a downturn. When it comes, you'll be ready to buy, and you'll be glad you waited.
0 votes
No scam. There are plenty of down payment assistance out there. But in many cases, you have to pay closing. And you are correct to suggest that if they don't have a down payment, they probably can't afford a house. Recently, my pipes burst$, followed by hot water heater going out$ and a few wiring problems$ Now that it's summer, yard maintenance and bug treatment comes into play
Flag Sat Jun 3, 2017
TO: Monalevinemarche, Home Buyer, Prescott Valley, AZ ... when you buy a house you have to qualify for the payment.. income/credit/debts the lender uses a debt ratio of a total of 41% of your monthly income to qualify you... depending on your monthly obligations ie. credit cards/installment loan payments.. the lender will tell you know what you qualify to purchase.. that doesn't mean that there are any homes in your price range. NO lender wants the house back.. when you buy a house,, you are responsible for all the utilities, repairs etc... its quite likely that your delinquent bills have tarnished your credit.. if you rent and don't make the payments.. you loose nothing but your apartment.. Even utility companies report you to the credit bureaus if you don't pay them...you must have a good credit score you qualify for a VA loan, you still may not find a house in your price range to purchase regardless of what you pay in rent
Flag Sun Mar 26, 2017
Susie Kay, Agent, Dallas, TX
Fri Mar 24, 2017
It depends on the type of loan. I would suggest that you discuss this with your lender.
1 vote
, Home Buyer, Denver, CO
Fri Mar 24, 2017
There are a number of mortgages available for first time buyers that require no down payment. I know, because I got one. Talk to your realtor.
4 votes
When I asked the same questions to my realtor, he told me none :( Which one you got?
Flag Fri Mar 24, 2017
Blairbelt, Home Buyer, Brattleboro, VT
Fri Mar 24, 2017
I've been finding that we need 20% down payment at most places.
1 vote
FHA loans only require 3.5% down plus closing costs and fees. And that is what we have. We couldn't find a home locally in our price range so we are moving halfway across the country. It is well worth it. Less than half of rent for a home large enough for my entire family and still got enough land to continue with animal rescue.
Flag Thu Mar 30, 2017
Samir.greenv…, Home Buyer, New York, NY
Fri Mar 24, 2017
yes this is always the case .
0 votes
Michael Keou…, Home Buyer, Elizabeth, NJ
Fri Mar 24, 2017
I don't believe that no down payment mortgages for a first time buyer to qualify for are necessarily "always" the case. Whoever that realtor is may have a particular mortgage loan program to offer or to discuss with you. And, if someone puts "no money down" they will likely have a larger mortgage amount to qualify for and to pay monthly payments in relation to. Please remember "always" and "never" are words that are "seldom true"! But, I would think that you may want to interview and question that realtor just like they need to interview and question you if and when you seriously want to offer to purchase a home with a written contract offer. And, at that time it is also customary to leave some amount of money deposit for consideration to show you are a serious buyer. There are also closing fees that need to be available and covered.
2 votes
Michael, you just told everyone that you are a real estate agent, not a lender,, the best advice you can give someone is to see a lender. You don't know what lenders know, there are a lot of programs available for down payment assistance - some are "grant" funds that don't require a repayment schedule, and there are other programs that do require a small repayment schedule.. a LENDER will tell you what is available in your city/county/state. People, see your reputable lender firs ie. local bank.. then see a Real Estate Agent
Flag Sun Mar 26, 2017
This Trulia site indicates that "I am a Homebuyer from Elizabeth, NJ": I am neither a home buyer or from Elizabeth. I am a long time real estate professional who has a sales license, an appraisal license, a CTA Certificate, and who was as long ago as 1995 acquired a IFA Appraiser Designation by NAIFA. I am also a longtime members of the Multiple Listing Service which covers a large area of NJ. All of my state licenses and certifications mentioned above are NJ issued. However, the IFA designation I was issued in 1995 is from NAIFA which is the National Association of Independent Fee Appraisers.
Flag Fri Mar 24, 2017
Karen Ramana…, Home Buyer, Hinsdale, IL
Thu Mar 23, 2017
There are 0% down programs available to qualified home buyers. There are also down payment assistance programs available to first time home buyers.

I'm located and licensed in Illinois.
Contact me and I can let you know if you qualify for a 0% down or the down payment assistance program.
My name is Karen and I can be reached at (815) 302-5390.
I look forward to helping you.
8 votes
Msivels1960, Home Buyer, San Francisco, CA
Thu Mar 23, 2017
Depends on the loan type and credit score. Even I've been finding out they still want something down.
2 votes
Madlynf, Home Owner, Lake Wales, FL
Thu Mar 23, 2017
V,A. Loans for veterans do not require a down payment.
3 votes
Kathleen Bair, Agent, Grand Junction, CO
Thu Mar 23, 2017
Hello,
This is not true, however, there are down payment assistance grants/funding for eligible homebuyers. These are not limited to first time buyers, any qualified/eligible applicant may take advantage of these programs. And of course there is always USDA $0 down financing for eligible buyers in eligible areas. The best resource for this information is a good lender! Of course an experienced Realtor should have a fairly good understanding of these programs, but it's really the Lender's department. ???? Hope this helps!! Best of luck!
7 votes
Jerrysolar352, Home Buyer, New York, NY
Thu Mar 23, 2017
2 votes
AJ Hernandez, Mortgage Broker Or Lender, Hialeah, FL
Thu Mar 23, 2017
In today's market most loan programs require a down payment however in some cases you can obtain down payment assistance from various approved sources such as a grant from a housing agency. I would suggest that even if you are obtaining this type of assistance that you have some type of savings before buying a home as you never know what might come up later down the road. An emergency fund is always a good thing to have for any of life's surprises but especially when you own a home. Also you might note that MOST of the DPA's program require you to contribute something towards the transaction from your own pocket in some cases a dollar amount or a percentage of the price of the home. I currently only offer loans in Florida so I recommend you speak to a licensed mortgage loan originator in your area to see what applies to your specific situation.
4 votes
What about state of Indiana for first time buyers
Flag Thu Mar 23, 2017
Kathleen.hul…, Home Buyer, Streator, IL
Thu Mar 23, 2017
The only no money down loans that I ever heard of are the VA Mortgage.
These are for military veterans.
1 vote
The USDA offers a rural development loan that is a no money down loan.
Flag Thu Mar 23, 2017
Michigan had Rural Development.
Flag Thu Mar 23, 2017
Kay.bodin, Home Buyer, New York, NY
Thu Mar 23, 2017
It depends on the type of loan in the area where the home is located ask your lender when you find a home they can tell you
1 vote
Alice, Home Buyer, New York, NY
Thu Mar 23, 2017
I'm the first time buy owners . But I can put 10 or 12% down
0 votes
Ask your lender about an FHA Mortgage. They have a lower percentage down, if you qualify.
Flag Thu Mar 23, 2017
Scott762, Home Buyer, New York, NY
Thu Mar 23, 2017
I'm a first time buyer. I've been at my job 16 years . I was approved for a Loan . my credit score is above 700. They want a minimum of 3.5 % down.
2 votes
That's a good deal.
Flag Thu Mar 23, 2017
William K, Renter, Saint Charles, IL
Thu Mar 23, 2017
Yes, it is actually very possible (and do not let anyone tell you different). That said, first time home buyer programs vary from state to state. HomeLoansForAll.com is mentioned a lot on these forums and is a really good place to start!
1 vote
Thanks. I will check it out.
Flag Thu Mar 23, 2017
John Wyatt, Home Buyer, Saint Louis, MO
Thu Mar 23, 2017
There are first time buyer programs such as MHDC, etc which will make the down payment FHA
1 vote
What does MHDC stand for? I wanted to research it. Thanks
Flag Thu Mar 23, 2017
Gali.rob91, Home Buyer, New York, NY
Thu Mar 23, 2017
That is partially true, reason being is that their alot of programs and grants for first time home buyers that can assist you with your down payment but those type of programs have steict guidelines - they all vary. Here in California most of the programs require a minimum of 640 credit score. Evermore, some grants may no longer work due to state cuts going on right now. For example, when I purchase my first home here in Temecula Ca I tried to apply for a grant and they advised me that they had run out of money until next year 2018. Just do your research but it is possible to not give anything down, if you don't qualify for these programs then be ready to have a savings account and 3.5% or more for the down payment.
1 vote
In such a case, is it best to start the grant process before the loan process (during pre-qualification) or does it matter?
Flag Fri Mar 24, 2017
jofer43, Home Buyer, La Marque, TX
Thu Mar 23, 2017
Chase required me to pay for 10% downpayment.
0 votes
Jenniferball…, Home Buyer, New York, NY
Thu Mar 23, 2017
Is it true that first time buyer don't need down payment
0 votes
Denise Paszk…, Agent, Hemet, CA
Thu Mar 23, 2017
No, this is not always the case, it depends on several factors. For instance, The GSFA Platinum grant program provides financial assistance to low and moderate-income home buyers in California. Therefore, the Program has income limits (based on the location of the property). Your state may have other programs available with similiar guidelines. I suggest talking to a reputable and direct lender.

Denise Paszkiewicz-Realtor
Coldwell Banker Kivett-Teeters
CA BRE# 01952097
denisepforhomes.com
denise.paszkiewicz@coldwellbanker.com
3 votes
Djulier2, Home Buyer, Hazel Crest, IL
Thu Mar 23, 2017
Check out http://www.NACA.com.Nationwide Non profit lender for first time homebuyers.Possible to get no money down including closing costs. They are more lenient on people who have issues with their credit.They can help you on improving your credit plus they tell you how much of loan you can qualify for. To purchase a home with their loan, you need to attend one Four hour class on Saturday. They give 15&30 year loans. For persons who have some cash, they allow the purchaser to buy down the interest on the loan as follows;
15 year loan you can pay 1%(1 Point) of loan amount to lender and lower your interest rate by .5%. For a 30 year loan It reduces your interest rate by .25%. Each additional point you pay further lowers the loan interest rate.My understanding is you could buy the interest to Zero.
Say $100,000 property /loan.Assume your interest rate is 3.5%, $7000 on a 15year or $14,000 on a 30 year would do the trick.It beats having an $93,000 or $86,000 loan with interest.
If you are fortunate to live in an area that has 3 Families,I recommend you buy that first before a single house. The building may cost more , but my understanding is you can use a percentage of the rental income to help qualify for a larger loan.The two rental units would most likely cover a good portion of the monthly mortgage costs /expenses.Think about having little or no rent costs plus the building can be part of your retirement.You can hire a management company to deal with the two rental units while you are living there.When you move out for a home or job change. You rent your unit and are not forced to sell in a possible Real Estate downturn. If you buy the house first, it will cost you 20% down + closing costs to get the 3 Family.
6 votes
what is 3families?
Flag Fri Mar 24, 2017
what is 3families?
Flag Fri Mar 24, 2017
Sidney Presl…, Home Buyer, Baltimore, MD
Thu Mar 23, 2017
Yes I'm from maryland and brought a house with 48k worth of grants and it paid my closing cost and down payment.
2 votes
How did you get the grants?
Flag Thu Mar 23, 2017
How are you able to get a grant?
Flag Thu Mar 23, 2017
LissA, Home Owner, Denver, CO
Thu Mar 23, 2017
Absolutely. I live in Colorado and they have a first time buyer program and I received a grant for down payment and closing costs. They have their own loan programs to credit score should be min 620. I make a decent income so many options and programs for state, county, and city. Im not sure of the programs in other states but it's available.
5 votes
Tracih, contact me if you'd like! I'd love to help you and your daughter navigate this market here in GJ/ Fruita. :)
Flag Thu Mar 23, 2017
I live in Colorado now. My daughter is wanting to buy and the down payment/ closing costs are daunting. How did you get a grant and through who.
Flag Thu Mar 23, 2017
with a score of 640 an not 1 below you may qualify but most lenders really do not like messing with it. that will also include USDA.an FHA ..
Flag Thu Mar 23, 2017
Cadillacstyl…, Home Owner, Myrtle Beach, SC
Thu Mar 23, 2017
You need a down payment if you have any common sense.
6 votes
So continue to rent and waste your money! You're the one lacking common sense. They put these programs in place to help people being priced out of renting.
Flag Thu Mar 23, 2017
Cause it's the truth, Like it or not.
Flag Thu Mar 23, 2017
Why do you have to be so brass?
Flag Thu Mar 23, 2017
NACA Online…, , Charlotte, NC
Thu Mar 23, 2017
The NACA program is a true no down payment program.
3 votes
NACA has horrible customer service and support, they cancel appointments at the last minute, never return calls, and have a 3+ month waiting period in between each appointment.
Flag Fri Mar 24, 2017
NACA is a fake. I started the program a year ago and I submitted all my documents and had all the money ready. The person handling my file decided to never return my calls. Then I contacted the manager and she avoided me as well. Their solution was if I was unhappy with them that they would transfer my file to a different office. A year. I wasted a year. And ironically I applied 2 weeks ago for a mortgage through quicken and was literally preapproved in 10 mins. I'm connected to a real estate agent and on my way to purchase. Everyone that asks me about or mentions NACA I tell EVERYONE it's a fake program.
Flag Thu Mar 23, 2017
AJ Blye, Agent, Westminster, MD
Thu Mar 23, 2017
I am a Maryland Realtor. There are ways to apply for settlement assistance programs in Baltimore City and a few counties here and there. Buyers are responsible for settlement costs. Often, your realtor can negotiate so that sellers will contribute towards settlement fees, not always and this is not a program. It is part of negotiations. Further, if you need a loan, there is the USDA loan for qualifying properties that is a no money down program.
9 votes
Theodore Jam…, Home Buyer, Oxford, NY
Thu Mar 23, 2017
I'm on SSI and SSD I pay all my bills and they're all I do everything myself pay my own bills money I have left over I put that towards other stuff like laundry soap and stuff like that to make it through I still have money left over not much but enough to make it to the next month
2 votes
Theodore Jam…, Home Buyer, Oxford, NY
Thu Mar 23, 2017
I heard first time home buyers don't need to have any money down to buy a house they get a loan and they pay monthly mortgage so I would like to know why someone that has low income couldn't get a house first home buyers to get a loan to get a house of his own it stopped renting so why why isn't there anybody out there that would help someone like that there's more than just one person like myself that is trying to do this there's other people trying to do it and nobody would give them the chance to prove him that they can do it they got to go and lend money to people that lie about things just to get a loan from all different kind of Bank
2 votes
Really... when you buy a house you have to qualify for the payment.. the lender uses 28% of your monthly income to qualify you... so you can go qualify for a home loan.. the lender will tell you what you qualify to purchase.. that doesn't mean that there are any homes in your price range (?) NO lender wants the house back.. when you buy a house,, you are responsible for all the utilities, repairs etc... NO ONE BUT you.. if you rent and don't make the payments.. you loose nothing but your apartment.. Eveb utility companies report you to the credit bureaus if you don't pay them... Liar loans are a part of the past, all those liars made it harder for you to get a loan. Different cities offer down payment assistance programs based on income and credit - check it out in your area, just because you may qualify for those programs, still doesn't mean you can find a house in your price range.
Flag Thu Mar 23, 2017
save about 3 grand an decent credit score above 580 go FHA 3.5% down , house not above 75.000, have seller contribute closing cost an it is possible ,
Flag Thu Mar 23, 2017
The lender looks at buyers debt to income ratio. If the debt is high and income low, the likelihood of the monthly note being paid on time or at all is significantly reduced. There's too much risk for the lender to approve a high debt to income loan.
Flag Thu Mar 23, 2017
Mary Belle I…, Agent, Portsmouth, NH
Thu Mar 23, 2017
Great question! Knowing the answer is important so you can avoid "sticker shock" throughout your transaction. Unfortunately, yes - there are expenses you'll need to have available to you, even if you get a no-money-down loan. No matter what type of loan you get, you'll need to put down (A) earnest money (about 1%-2% if you're in the State of NH), (B) costs for any required or chosen Professional Home/Water/Septic Inspections, depending on the term of your loans (C) possibly the cost of an appraisal required by your lender, (D) six months' to a year's cost of home insurance that you'll be required to pay ahead of time called your "home insurance binder", often times the money to reimburse the seller's pre-existing (E) fuel that may already be at the property, and (F) any Closing Costs above those which you may not have been able to borrow from the Seller. I hate to be the one to deliver that buzz-kill. Truly, I wish everyone could put down nothing, but those are costs which homebuyers need to have on-hand, even if you have a no-money-down loan. **Do double-check with your mortgage contact to ask, "With my type of loan (1) which home inspections will [I] be required to have and (2) will [I] be required to pay for the home appraisal up-front or will those be rolled into my Closing Costs at the end of the transaction?"
11 votes
Debchin, Home Buyer, New York, NY
Thu Mar 23, 2017
You do need one
Based on your credit score, it may be less than the normal percentage required
1 vote
my credit might not be that good it's because of my ex-wife alright but when I left her my life it's been turned around and I've been doing better for myself I'm paid off a snowmobile on my own without her help and that was 257 43 What's the total amount payment each month that I had to pay but I still paid it all off with a week to spare before due date was up I took care of my own bills like I do now
Flag Thu Mar 23, 2017
Truthisbest1, Home Buyer, Tuscaloosa, AL
Thu Mar 23, 2017
I am buying a house and am a first time buyer. We got an FHA loan with zero down. Actually, my wife got the loan without even needing a cosigner. Our rate is 4.5% which is a little high but it's a fair trade-off for having zero down. Actually, we did put $1,000 down in earnest money so I guess zero isn't entirely accurate.
8 votes
To everyone that doesn't understand "earnest money" it goes towards the purchase price when the house closes.. Say you're purchasing a $200,000 house and you put $l,000 earnest money "down", you now owe $199,000 when you are ready to close.. To all those that say save 20% down or pay cash.. they're just boasting - the typical person starting out doesn't have (in this case) 20% is $40,000 plus closing costs. Some crazy answers here... I think Trulia likes "tweets"
Flag Thu Mar 23, 2017
Mind your own, fella. You don't know what I can and can't afford. Cheers.
Flag Thu Mar 23, 2017
but you have a problem Wife and Kids I'm doing it all by myself trying to do it I'm on SSI and SSD and I'm only getting a certain amount each month
Flag Thu Mar 23, 2017
If you cant afford a down payment, you cant afford a home. When broke people buy homes, they become broker.
Flag Thu Mar 23, 2017
asgj1978, Home Buyer, Oak Grove, KY
Thu Mar 23, 2017
A lot of misinformation laden (and just plain confusing!!) answers here...the bottom line is that yes, there are some lenders and programs for no down payment...but you will more than likely end up paying more in interest, and fees that are rolled into the mortgage. Saving some down payment shows a lender you have the ability to be disciplined where money is concerned. I would not use that realtor...no realtor should be giving such advice, because even if there are programs available, not every first time home buyer would be eligible...so the statement that first time home buyers do not need a down payment is just plain wrong.
8 votes
Kasha, Home Buyer, Jacksonville, FL
Thu Mar 23, 2017
It really depends. In my case I didn't have to take anything to closing with down payment assistance
2 votes
Scott Korbin, Agent, Cary, NC
Thu Mar 23, 2017
No, this is NOT always the case. Was it a Realtor(R) that gave you this information, or just a Real Estate Agent in your marketplace?
1 vote
What is that suppose to mean a Realtor, or just a agent, both r licensed. The only difference is one pays more money & gets to say I'm a Realtor instead of I'm a real estate agent. N r small town the agents r ur lifers have 50 to 60 years + experience, the Realtor r ur crooked, thieving, manipulating (R) punks. An example, I work with family or close friends, to protect my own so they don't wade into the den of thieves alone. I put in a call to (R) office in town as they had 2 of the several homes she wanted to see , do u think we ever got 2 see those homes, of course not their not worried about the home owner who they r suppose to represent or buyers of outside agents. 1 never sold the one she liked most, how sad for the sellers. Another (R)when I ask what taxes were on a home he'd just showed, he said he didn't know, "but u just showed", he said "they don't ask I'm not telling" 1000 bill 1st time buyer's wow!! Old school agents & honesty been pushed out by (R)
Flag Sat Mar 25, 2017
Wesleybussard, , Chambersburg, PA
Thu Mar 23, 2017
You may ask for Seller assist to cover the down payment
0 votes
This is incorrect information. You may ask the Seller for assistance with Closing Costs, subject to lender requirements.
Flag Thu Mar 23, 2017
Janice O'Rou…, Agent, Bellingham, WA
Thu Mar 23, 2017
If you or a spouse is a veteran, or active duty, there is a VA loan option with no down payment available. There would be a VA funding fee (2.15% of purchase price if buyer is a first time user of the VA loan option that is typically rolled into the loan too cover the VA's guarantee of the loan for lender).
5 votes
What are the credit score requirements
Flag Thu Mar 23, 2017
Carolmeeks779, Home Buyer, New York, NY
Thu Mar 23, 2017
In some cases, the type mortgage loan, there is no money down as in VA, USDA, and FHA mortgage products. Most conventional mtgs. Required money down.
4 votes
Skibrood5, Home Buyer, Sturgeon Bay, WI
Thu Mar 23, 2017
My daughter went thru HUD, but she had to buy in a specific area. They loaned hee rhe down payment at nearly 0% interest. Check what programs are available where you want to buy
5 votes
Carl Peter K…, Home Buyer, New York, NY
Thu Mar 23, 2017
Mortgage loans created a hyperinflation of housing prices through leveraging. A more honest approach is to save enough to make a cash offer.
2 votes
Business, the Great Depression in recent history was, by a large part, caused by irresponsible lending to those who cannot afford the home they bought. Yet, inflation was in check during those years.
Leveraging is a neither good nor bad. It is a tool. A tool can be used to do good or bad. It is overleveraging that is the issue. There is nothing dishonest about borrowing money to buy a home. It is the lying about the borrower's income and debt to defeat lending guidelines in order to qualify for a loan that is dishonest. This dishonesty, either by irresponsible lenders or borrowers, was the root of the issue.
Flag Fri Mar 24, 2017
What a stupid suggestion
Flag Thu Mar 23, 2017
Great advise
Flag Thu Mar 23, 2017
how is that "honest"? and is having a mortgage "dishonest"? cash offers are unrealistic for 99% of the population, poor advise :(
Flag Thu Mar 23, 2017
Not a answer
Flag Thu Mar 23, 2017
Not everyone has that luxury.
Flag Thu Mar 23, 2017
that is not an answer
Flag Thu Mar 23, 2017
Lisa Curtiss, Home Buyer, Peoria, AZ
Thu Mar 23, 2017
Ask a mortgage BROKER in your area if they offer the 1% down payment with 2% equity match. If you are in AZ you can ask me about it!
2 votes
hi can u give me some info on the program u mentioned? me n my wife are in the market were in Gilbert Az right now
Flag Fri Mar 24, 2017
Hi Lisa, I am thinking about buying in AZ - how is the market out there for first time buyers?
Flag Thu Mar 23, 2017
Paul, Home Seller, Oakland, CA
Thu Mar 23, 2017
As a lender, I get asked this question all the time. Also, there are a number of polls out there saying that 80%-plus of millenials think you need a large down payment to buy. This is not true. You need something but not much. FHA has the 3.5% down program with a pretty major Mortgage Insurance tacked on each month. But, as another respondent stated, banks (and more specifically wholesale lenders available only through mortgage brokers) have begun to get more creative with their programs. For instance, I have a wholesale lender that allows a 1% down purchase to which they will GIVE the borrower an additional 2% themselves to make a 3% down payment total. THis program is available either with Mortgage Insurance (cheaper than FHA's, by the way) as well as with Lender Paid Mortgage Insurance which is reflected in a slightly higher interest rate than what you might have qualified for otherwise.

Above all, do NOT limit yourself to a bank for your mortgage needs. Banks only offer their own programs and will never tell you about another lender's (possibly superior) product. If they can't fit you into their own box, they will just turn you down, oftentimes leaving you with the loss of an application fee, a credit pull and,many times, an appriasal fee. Check with a reputable mortgage broker in your area. You'd be surprised at how many more flexible products are available through that channel.
20 votes
Hi Paul,
Thank you for adding insightful comments to this thread. You encourage the buyer to "Check with a reputable mortgage broker in your area. " I live in Los Angeles. Can you make a specific reccomendation to follow up? Thank you in advance for any reply.
Flag Thu Mar 23, 2017
Where should I go to find a lender that will do this? thanks
Flag Thu Mar 23, 2017
Wise Wolf, Home Buyer, Hialeah Gardens, FL
Thu Mar 23, 2017
You can do NACA which is 0% down, 0% closing costs, no fees, bad credit ok, below market interest rates: https://www.naca.com/about/about-naca/

I tried NACA though and didnt like the way that they worked because I had a hard time getting my calls returned and the appointments that they gave me were cancelled at the last minute after waiting 3 months for an appointment. I felt it was better to bite the bullet and save 20% down payment + closing costs for more professional service and customer support and just get a loan through my local credit union.
2 votes
NACA sucks. I was in their process for over two years and finally quit. Not worth my time and headache. Very disappointing.
Flag Thu Mar 23, 2017
Your experience is not surprising when you deal with bureaucrats who believe they are doing you a favor and have no accountability.
Flag Thu Mar 23, 2017
Don't bother with NACA. I went in with a $15,000 reserve available, no bills, no debt, 5 years of rental history. They said no problem. Asked for all my bank statements, rental information, job info and I still haven't heard back from them. This was last summer. I thought my credit score wasn't good enough because I pay everything in cash. I finally called a bank directly and close on my 1st house next week. Yes, you need money down. There are grants available and this is the perfect time to apply for them. The housing market is opening up now. Good Luck
Flag Thu Mar 23, 2017
We went through Desert Schools and their sister company CNN mortgages approved us for down payment assistance. So there are programs out there you just have to research a little. We are first time home buyers to.
Flag Thu Mar 23, 2017
Jam0907, Home Buyer, 89052
Thu Mar 23, 2017
It also depends if you state has a first time home buyers program. In some states they have a what called small 2nd. Usually starts at 5k. It is for down payment and closing cost assistance. It will go on as a 2nd mortgage. You will not have to pay monthly payments on the amount, however it will have to be paid off at the sale or refinance of the property. In my state you have to go through the housing authority for information. Hope this helps.
3 votes
Denah Wright, Agent, Huntsville, AL
Thu Mar 23, 2017
Hi! You're best option is to talk with a local, reputable lender at a few different places. You may not want to allow them to pull your credit just yet unless you are ready to be writing an offer within say 30 days, but just ask what kind of programs they have. Let the lender know your situation and timeframe. He/she should be able to advise whether now is the time or to wait to pull credit. There is also a timeframe in which multiple credit pulls are allowed without hitting your credit but once, but please ask a lender for details on that as well as I am not a licensed mortgage broker or lender.
Some banks have in-house loans that don't have down payments, there are rural development loans that are 100% financing based on location of the property (usually outside of city limits), there's VA if you qualify that's 100% financing, etc. Check with a bank and a mortgage company. They can offer different types of loan products. Also ask about any available grants in your area to see if you qualify for those.

Hope this helps and happy house hunting!
Denah

Denah L. Wright, Realtor and Relocation Specialist
Coldwell Banker of the Vallley
denah.wright@coldwellbanker.com
6 votes
Great answer!
Flag Thu Mar 23, 2017
Magan, Home Buyer, Corinth, TX
Thu Mar 23, 2017
I did a piggyback mortgage and it's worked out very well for me. Ten percent down, no PMI. paid off the smaller loan in 6 years. Just had to be disciplined in paying down the piggyback loan first since the interest rate was higher.
3 votes
Please explain how this works - Thank you
Flag Thu Mar 23, 2017
Right, instead of going with 90/10 with PMI, you are better off doing an 80/10/10 deal with no PMI. The savings in PMI payments go a long way toward paying the 10% second.
Flag Thu Mar 23, 2017
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