Post # 1
My husband and I have recently been talking about buying. We have rented for the last couple of years and are happy with where we’re at but I want the freedom to do what I want to a house and we have three big dogs which makes it almost impossible to find a house to rent. At this point we don’t have a down payment but within the next year we will have $5000-$10,000.
My question is this, is there ever an opportunity to buy without having a down payment? Do banks ever give loans without one?
Also, what are the other costs that come with buying that aren’t the obvious (the house)? Closing costs? What else?
Post # 3
You may be eligible for an FHA, which means you can do as little as 3.5% down. It comes with higher fees and PMI (private mortgage insurance – since you are a higher risk for putting less than 20% down). Keep in mind that you will need closing costs, which may include the first 6 months of home insurance and taxes, plus transfer taxes if your city/county have them, plus any fees from the bank and title company (usually a few thousand on up to over $10k depending on the home and where you live). Appraisals are usually around $400, and inspectors are usually about $350-500.
Most banks also want to see 6 months+ of living expenses in a savings account that will not be touched be the down payment/home purchase.
You will also want an emergency fund of at least $10k set aside in case your water heater fails, plumbing goes bad, roof leaks, etc etc.
It sounds like you guys aren’t going to have enough in savings to buy, honestly, unless you can get family to gift you more money.
Post # 4
There’s lots of information online.