Home Buying in Portland>Question Details

Ken, Home Buyer in Beaverton, OR

Young couple with two kids, one income, no debt and no down payment? Home ownership possible?

Asked by Ken, Beaverton, OR Fri Aug 29, 2008

My family is getting to big for our townhouse we rent and would like to buy a home but I feel like we have to many things against us. We have no money for a down payment, we had a bankruptcy almost five years ago and we only have one income which is about $50k. I have had my job for almost four years and my previous job was just as long. We also have a great rental history. Is looking to buy a home just a waste of time?

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No. Your a good candidate but the 100% programs are all going to be gone after Oct first. the Nehemiah and Ameridream programs still have money but we would need to get you into something in the next 10 days and close by 10-1-08.

Call me if you are interested and if I can help you guys. There is plenty to look at.

Best Wishes;

Dirk Knudsen
Re\Max Hall of Fame
#1 Rated Re\Max Broker in Oregon
Web Reference: http://www.nwhomecenter.com
1 vote Thank Flag Link Fri Aug 29, 2008
The best possible answer for you is to have a house built. Here is why. Anybody holding any land for sale is dying to get rid of it. You can get killer deals on land, because nobody is buying it. People are still buying houses, so you have competition.

I have a client that just offered 50k on a lot that is asking 100k. He will not get it, but he might get close.

The second step is to hire a contractor to build the house for you. I and a licensed Contractor, and build production style houses for $60/SF. Any Arbor, DR Horton, JLS, Centex home you see can be built for around this price (depending on hard finishes)

Financing works like this. I have a lender that will loan 80% of appraised value on any project. For example, if you purchase land for $75k, 2000SF @ $60/SF, 25k permits and 10k misc. the total project cost is 230k. The appraised value would need to be around $289k, which is very realistic.

Not only do you not have to have a downpayment, but you also have 20% equity the day you move in!

With your income, you could afford 2000 SF and a lot price of about 85k.

Please check out my website for more information. http://www.sevenpillarsinc.com and http://www.sevenpillarsdesign.com

Ben @ 971.275.7788
0 votes Thank Flag Link Mon Nov 10, 2008
Hi ken,

Yes there are still some 100% lending programs available. Some depend on your where your home is located as well as your income, credit and debt to income ratios. While many 100% financing programs have rode off into the sunset, there are a few remaining as well as some new programs coming out that tweak the old guidelines to a more conservative loan criteria.

There is even a few loan programs that will allow closing costs to be financed into the financing of the loan for a total of 102% of the home's purchase price.

contact a local bank or mortgage broker and they should have access to these programs. try and contact a Loan officer who specializes in these type of lending products. many lending professionals only focus on standard or conventional financing. there are options for a homeowner who can find a mortgage professional that is very knowledgeable in his career.

Happy House Hunting
0 votes Thank Flag Link Sun Nov 2, 2008
Ken, You've gotten some good information here. The one unknown is your present credit score. I would get in touch with a reputable mortgage broker (or give two or three a try for comparison's sake) right away and run your scenario past him/her. That can alleviate a lot of stress in these situations. Just be as forthright as you can about your financial situation. There are still options out there. You've got to start somewhere and now is as good a time as any (a better time, if you consider that prices have come down and there is some "real negotiation" in our local marketplace). If you go to my web site at http://www.janeesejackson.com on the left-hand navigation bar click on "My Resources". I've listed several loan officers that I've worked with and referred many times. It's at least a place to start. Don't give up, with good credit you can "own the world".
Janeese Jackson, Principal Broker
Real Estate Resource
0 votes Thank Flag Link Fri Aug 29, 2008
Hi Ken - I am dual licensed as both a Real Estate Broker & a Loan Officer here in the Portland Metro area. The info many of these folks have given you regarding the down payment assistance programs is absolutely correct in that most are going away. I have access to a down payment assistance program, however, that is sponsored by the federal government who will allow up to a 10% contribution towards your down payment & closing costs. Combine that with an FHA loan and have the seller pay your closing costs and we can still get you in a home for almost nothing out of pocket!

If you want to get started right away to see what you qualify for - you can log onto my loan website at: http://www.LetUsGuideYouHome.com and select the Loan Application tab and just follow the prompts to fill in the blanks. I can get that into my processor's hands on Tuesday and we can get running with this to see what we can do.

Kelly Gebler
Real Estate Broker, Residential Loan Officer & Commercial/Hard Money Loan Specialist
Commonwealth Group & DeMark Financial Services
415 17th Street, Suites 5-7
Oregon City, OR 97045
PH: 503-516-1637
0 votes Thank Flag Link Fri Aug 29, 2008
Ken, I need ot hook up with my lender. All the great low downloan programs for first time buyers are being stopped like the 100% DAP programs. There are still some programs avalilable today. Email me and I will give you the broker information so you can move forward and purchase that home. Good luck, looking to hear from you?
Tom Inglesby, Broker
RE/MAx EquityGroup Inc
0 votes Thank Flag Link Fri Aug 29, 2008
You might be able to qualify for a home in the $150k range. Go see your local lender and good luck. Try to save something for dp and closing costs, you might need at least a few thousand.
0 votes Thank Flag Link Fri Aug 29, 2008
Ken, as I am in the process of finding out the "downpayment assistance programs" are not all they are cracked up to be. My clients have decided to go with a no down payment 2 loan program, one that takes care of 80% and the other that takes care of 20%. Let me know if you want the info of the mortgage broker who found this program for us. Good luck!
0 votes Thank Flag Link Fri Aug 29, 2008
Hi Ken,

Actually there are still a couple programs that might enable you to buy a home (depending on your recent payment history) These "down payment assitance programs" can be a very useful tool for someone in your position.. Not to put too much pressure, but they are going away on 10/1/2008.

Give me a call if you would like more info.


Rick Sadle
Broker, Keller Williams Realty Sunset Corridor
0 votes Thank Flag Link Fri Aug 29, 2008
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