(Closed) No downpayment ?

posted 6 years ago in Home
Post # 3
Member
3671 posts
Sugar bee
  • Wedding: March 2011

@Al393:  My Brother-In-Law and SIL bought a house without a down payment.  They used a rural housing loan which restricted where they could look but helped with getting them a house. 

Post # 4
Member
2142 posts
Buzzing bee
  • Wedding: August 2010

When we bought our first home almost 5 years ago it was possible with a FHA Loan. But from what I’ve heard around the boards that is no longer feasible.

Not sure if there are any types of state/federal programs out there. But I’d imagine for those you probably need to fall below a certain income bracket?

GL!

Post # 5
Member
2214 posts
Buzzing bee

It is possible if you get a FHA loan in a rural area.  There might be other ways, but that is one that I know of.  Regular FHA loans require 3.5% down.  But while you might be able to get a loan with 0% doan, you still need savings.  I just bought a house in July, and the unexpected expenses of owning vs. renting are pretty significant.  It’s not just what your rent was vs. what your monthly mortgage is.  You also have to think about closing costs (for my house, not including downpayment, they were several thousand dollars.)  You might be able to find a seller to pay them, but with a lot of sellers taking loses on their homes or getting bank-owned homes, this might not be an option.  I would start saving now and get pre-approved for a mortgage, then start looking and see if it’s even feasible.  Good luck!

Post # 6
Member
13099 posts
Honey Beekeeper
  • Wedding: July 2010

I believe people used to be able to get a loan without a downpayment but with the current economy / housing crisis, I’m pretty sure that option is no longer available.

Even if it was, personally I don’t think it is at all smart to buy a house if you haven’t been able to save enough money for a down payment.  Houses come with lots of surprise costs and you have to be able to have a savings fund available for when the HVAC unit quits, the fridge gives out or the roof starts leaking.  If you have no money for a down-payment then you also don’t liekly have enough money to be prepared for the expenses that go along with owning a home.

Post # 7
Member
408 posts
Helper bee
  • Wedding: June 2012

We bought a house through USBank and they have a program called ‘American Dream’ so if you live near one…definitely check it out. I think we ended up paying a grand total of about $600 to buy our house last February.

Post # 8
Member
1110 posts
Bumble bee
  • Wedding: September 2011

We’re working on getting a 0% down loan, DH’s best friend did it too. We’re only looking in rural areas so I guess that’s why we’re eligible. A lot of people have personal reasons for needing to get a house when they can’t save up thousands of dollars for a down payment, that doesn’t mean you can’t afford the costs that come with a house. We’re saving up for closing costs, inspection, repairs etc.

We’re working with a bank that specializes in these type of loans.

Post # 9
Member
2819 posts
Sugar bee
  • Wedding: February 2013

I really wouldn’t recommend it, but I suppose it’s better than renting. (I have no idea if it’s possible, though.)

Post # 11
Member
2142 posts
Buzzing bee
  • Wedding: August 2010

Out of curiosity, for those of you who have gotten a 0% down loan in the last year or so did you have to fall below a certain income bracket to qualify?

Post # 12
Member
1271 posts
Bumble bee
  • Wedding: June 2012

I know that there is a FannieMae sponsored program that will let you buy a foreclosed home for 3% down.  You can get a decent place for not a large amount of deposit.

Post # 13
Member
2494 posts
Buzzing bee
  • Wedding: July 2012

In Ontario you need 5% minimum to buy a house.

Post # 14
Member
2819 posts
Sugar bee
  • Wedding: February 2013

@Al393:  Rural is non-city (city=urban). So, small town or in the country.

Post # 15
Member
2299 posts
Buzzing bee
  • Wedding: June 2010

I wouldn’t reccomend buying a home without putting something down. I’m not an expert, but I don’t think you would be able to even get a loan without some money down.

Post # 16
Member
3041 posts
Sugar bee
  • Wedding: May 2010

In Oregon there’s something called the “Dream Savers Program”… my friends did this, paid a total of around $1k (I think it was $200 a month for a year into a savings account, but it doesn’t have to be that much) & the program matched 4x that amount for their downpayment (sometimes they do 2x or 3x). You also have to go to a class, but I think it was just one class, maybe two & they weren’t that long. The whole purpose is to teach you how to save & to show that you’re reliable & make payments regularly. So if you think you can wait to buy a house, this is a GREAT program!

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