Can I buy a home without having a down payment? - Is it possible to buy a home without any money for a down payment? This is one of the most common questions asked, especially by first time homebuyers. Yes it is very possible to buy a home without the availability of any money for a down payment. In fact, in 2005 almost half of the first time home buyers that purchased homes bought a home without having a down payment and using a 100% financing program.
There are many different options for buyers looking for zero down programs. Some offer true 100%financing by allowing you to borrow up to 103% or 107% of the purchase price to cover closing costs. Others allow gifts from family members to cover all or a portion of a down payment.
Even if you are approved for 100% financing, there are still other costs to consider. There will be closing costs and things like homeowner's insurance and home inspections. You may be able to get the seller to agree to pay your closing costs. They are generally allowed to contribute up to 6% of the purchase price. Make sure you ask your loan officer how much cash you will need to close.
When a seller pays your closing costs, there are usually limits as to which closing costs they can pay. Most of the time, the seller can only pay for non-recurring closing costs, and you will still be required to pay the rest.
There is a downpayment assistance program that I am involved in that helps home buyers to get downpayment and closing help. If you want to know more, please send an email to email@example.com.
Can I Buy A Home If I Have Collections? - If you have any outstanding delinquent debts that are being reported on your credit bureau as collections it may or may not affect your ability to purchase a new home. The type of debt and how long ago it occurred will be a couple of the factors the lender will take into consideration when looking at your collections.
If your broker is placing you with BC lender, most of the lenders don't care for the medical bills you have on your credit report.
There are some sub-prime lenders, also known as B/C lenders, who will not care about collections at all when you are buying a home or refinancing your home. Some lenders will allow open collections up to a certain total amount and they can not exceed that amount or they will need to be paid to buy a home. Other lenders will not allow you to buy a home with any collections present at all, even if it was just a $50 medical bill. This is a good reason why it is good to take a look at your credit yourself a few months in advance of obtaining a loan to see what is reporting to your credit report and if there are any items that you need to take care of or have corrected before you begin trying to buy a home and obtain home loan financing. Sometimes you may have old collections that have been paid for showing up on your credit still. It is amazing how many collection companies out there don't have problem reporting collection accounts to the credit bureau as quickly as possible but when you pay off the collection, they don't seem to care about properly reporting the fact the collection was paid to the credit bureau. Therefore, collections can impact the availability of which lenders you can use to finance your new home purchase. No collection accounts can open up a wider variety of programs and lenders for you to choose from while having a lot of collections can really shut the door on the use of many lenders and may require you to obtain a loan with terms that are not as favorable.
Depending on the lender, you can have collections depending on how old the collection date is and the amount. If the collection was filed over 24 months ago, most subprime lenders disregard those collections. Another factor a lender will look at is the total amount owed in collections. Some lenders will allow you to have collection amounts not exceeding $2000. Government collections however, must always be paid since they can become a lien that attaches to the title of the property.
Although you can leave collections open and still secure home financing the higher interest rate you will be charged by leaving them open may or may not cost you more over the life of the loan. Talk to your mortgage broker about financing options when open collections are involved.
How Do I Buy My First Home? - So youre considering buying your first home. This is a very exciting time that also produces a lot of stress, anxiety, and even embarrassment. That stress, anxiety, and embarrassment is almost always caused by the mortgage process.
You may be asking questions such as: How much can I afford? What if my credit score is terrible? What if they laugh at me?
Understand that, as your loan officer, I want to help you successfully buy a home. Also, understand that, no matter what your credit report looks like, Ive almost definitely seen worse. Ive probably helped someone with worse credit obtain a mortgage. And if you cant qualify right now, I can give you a plan on how and when you can qualify.
There are hundreds of mortgage programs by many different banks that cover almost any financial situation. Many of these programs are created just for first time home buyers. If you have been renting or even living at home with your parents, there is a loan program for you.
How can you buy your first home you ask? This is a very common question and luckily the addition of tons of new mortgage programs have helped increase the level of home-ownership to record numbers. There are many programs available that will allow you to not only buy a home without putting any money down for a down payment but they will allow you to not have to pay any money out of your pocket for closing costs as well. Buying a home without having to come up with any money out of your pocket opens the door to homeownership to many consumers. Consult a mortgage professional to find out how you can buy a home without putting any money down or without having to bring any money to closing for closing costs.