Is there a way to waive off the 3.5% deposit with a FHA loan?

Asked by Yesica, 95391 Mon Feb 28, 2011

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Sally Grenier, Agent, Boulder, CO
Mon Feb 28, 2011
Some states have down payment assistance programs, but this is essentially the same as getting a 2nd mortgage. Talk to a lender or mortgage broker to see what your options are. scares me to hear people asking about "no money down" scenarios. This is what got us into this mess to begin with. People were buying houses they couldn't afford. If you can't afford the 3.5% to put down on a house, then maybe it's not the time to buy for you.
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John Keating, Agent, Alameda, CA
Tue Mar 1, 2011
Hello Yesica,
The 3.5% deposit is a requirement for an FHA loan. There a some city programs that have down payment assistance. Also you can use a gift from a relative to help with the down payment. I would check with your lender of chose for options to FHA loans. If you need help with finding a lender, I have access to PMZ Real Estate,s in house lender. Please give me a call or email me if you need more help. Thank you and have a great day!

John T. Keating
(209) 603-9326
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Tami Rines, , Tracy, CA
Mon Feb 28, 2011
The best person to ask this answer this question would be a reputable mortgage loan broker. Brian LaBars at Vintage Mortgage in Pleasanton would be a great resource.
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The Stephen…, Agent, Portland, OR
Mon Feb 28, 2011
No, but sometimes you can find 100% loan options with your local (smaller) banks and credit unions.
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Tara L. Dier…, , Austin, TX
Mon Feb 28, 2011
Unfortunately there is no way around the 3.5% required down payment for an FHA loan. However, you can use gift funds from any of the following sources:

• a relative
• an employer or labor union
• a close friend with a clearly defined and documented interest in the borrower
• a charitable organization
• a governmental agency or public entity that has a program providing home ownership assistance to
low- and moderate-income families, or first-time homebuyers.

The gift funds must be a true gift! There can be no terms for repayment of the gift funds from the source.

I hope this helps!
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Penny O'Brien, Agent, Las Vegas, NV
Mon Feb 28, 2011
Hello Yesica,

I'd advise speaking with a lender. In Las Vegas and our surrounding areas we have some financing programs that pay the 3.5% for closing costs on FHA loans but when the program runs out of money the program is over. Check with local lenders to see if you have any programs available like that in your area. Enjoy your day.

Penny O'Brien with Simply Vegas
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Debbi Foster, Agent, Tracy, CA
Mon Feb 28, 2011
Hello Jesica,

Your best option is to talk with reputable Mortgage Lender to answer these questions. I have worked with Brian LeBars at Vintage Morgage and he can give you all the information on FHA loans. He is very knowledgable with all types of loans. You definatley want to work with someone that specializes in these types of loans and I highly recommend Brian. I am here in the Tracy, Mountain House area if you have any questions. Make it a great day, Debbi Foster
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Brian LeBars, Mortgage Broker Or Lender, Pleasanton, CA
Mon Feb 28, 2011
Hi Yesica...

You can research further on my website about FHA loans but 3.5% is the standard down payment. There is a loan in conjunction using a CALFHA program where the borrower can bring in just 1% using the programs combined. Please let me know if you have any questions. My contact info is on my site.


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