do you have to have money for a down payment and closing costs to purchase a home?

Asked by Mickye Hearell, 76501 Tue Jan 17, 2012

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, ,
Wed Jan 18, 2012
Hi Mickye,

It depends on the type of loan you qualify for.

An FHA loan requires a down payment of 3.5% but that money can be "gifted" to you so it's almost like a no money down loan. FHA also allows seller concessions of up to 6% of the purchase prices to cover your closing costs.

A USDA mortgage doesn't require a down payment and allows the same amount of seller concessions as FHA but it also will allow you to roll your closing costs into the loan as long as the appraised value supports it. The only downside with a USDA mortgage is you would have to buy a home on the outskirts of Temple.

You can use the link below to see what areas around Temple are eligible for a no money down USDA mortgage.
http://eligibility.sc.egov.usda.gov/eligibility/eligibilityA…
0 votes
Stacy Jenkins, Agent, Friendswood, TX
Tue Jan 17, 2012
Basically yes you do. Most loans require that you have some "skin in the game" so that is less attractive for you to walk away from a home. That is what many people chose to do when there were loans where all the closing costs, downpayment , etc. were rolled into the loan. That is why the mortgage fiasco happened. Find a good agent and talk their advise for loan officers or do some research your slef by contacting our bank or credit union. It's not as easy to get finanacing as it once was but it is still doable if you have good credit, and some money to pay for inspectors, appraisers etc. Good luck.
0 votes
Jimmy Torres, Agent, Temple, TX
Tue Jan 17, 2012
Mickye,

There are a few different ways to get in $0 down, one is USDA and the other is being a first time home buyer. You can also negotiate the closing cost with most people. Call me @ 254-780-7711 and I can help you more
0 votes
Albert Elhage, Agent, Austin, TX
Tue Jan 17, 2012
It is advisable to have money for at least the down payment.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Jan 17, 2012
Simple answer YES

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes
April Harris, , Belton, TX
Tue Jan 17, 2012
Mickye,
There is a loan officer out of Killeen who does USDA loans. You may want to give her a call and see if you qualify. It's a great loan if you can get it. Temple has first time home buyers grant as well. Everything will depend on if you qualify. The loan officers number is 254.338.4906 Kelly Stuckey First Community Mortgage.
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Jan 17, 2012
Mickye,
The general answer is yes. You should have a down payment for financing and closing costs need to be paid; if not by you up front it may be possible to hide them in the price (seller paid) or in the interest rate (lender paid). But you will also need reserves (savings for your first few months in the house), the money to pay the inspector and pizza money for your friends who unpack your truck.
There are zero down loan programs, VA, USDA, Key Bank has one, but these have qualifications that you may or may not fit into.
0 votes
, ,
Tue Jan 17, 2012
There is a HUD $100 down payment deal.
Look here=> http://activerain.com/blogsview/2574410/fha-100-down-payment…

Also.... USDA has a 100% financing loan for rural areas. Temple would qualify
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