Can I buy a house with 0% down and no closing costs???

We are a first time home buyer. Can we buy a house with no money down and not pay for closing costs ?

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  • 1 decade ago
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    It is very likely that you could. There are probably many programs that you may qualify for. Do you have good credit? GOOD LUCK

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  • 1 decade ago

    There are programs for nothing down andd closing costs being finaced into the mortgage. Over the life of the loan you will pay MUCH more than if you paid the closing costs and put down a deposit.

    If you are putting 0% down you will have to pay PMI (private mortgage insurance) through the bank and that can add a big chunk to your mortgage. You can ask the lender if they offer 80-10-10 or other packages where 80% of the home is on primary loan and the rest is on 1 or 2 home equity loans (this eliminates PMI since not more than 80% of home is financed on 1 mortgage). The other loan(s) will be higher interest rate of course.

    The closing costs are typically financed by increasing the amount of the selling price and the seller paying your mortgage costs (it's called a "sellers concession" in many states).

    Just keep in mind in the ned it will cost you a lot to do this but of course it may be the only way to get into the home originally so it's a financial decision only you can make.

    Most of the large banks offer these programs as well as mortgage brokers.

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  • 1 decade ago

    Someone has to pay the closing costs, either you or the seller. If you can find a motivated seller who is willing to sell the house for below market and agree to pay most or all of the closing costs, you could be in luck. Or they might sell below market and you can add the closing costs on the mortgage. The reason I specify buying below the market value is that most lenders will not finance 100% of the house's appraised value.

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  • 1 decade ago

    To be honest, no. Whatever you do not pay up front will be paid over the life of the Mortgage and will be evidenced by a higher Interest rate. For Example, say 30 year fixed is 6.125% and say you qualify for that. If you wanted no closing costs, it would more than likely be rolled into the interest rate @ 6.5% over the life of the loan.

    This is just one aspect. The main point to remember is There is no Free lunch. Pay small now, or a lot later.

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  • Anonymous
    1 decade ago

    yes, however some lenders frown on this. there are many techniques you may use to buy a home 100% without any out of pocket cost, just understand that the bank isn't the only source of financing. i found a great site that shows you many ways to accomplish this.

    http://timboson.blogspot.com/

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  • 1 decade ago

    You can but with today's housing market I would not suggest it. By next year you will have lost your house, shirt, pants and credit. Suggest you rent until you have at least 10% down and costs. Mortgage insurance will kick out at 21%.

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  • 1 decade ago

    This maybe alot to ask depending on where your looking and what your credit is like.

    Are you in a LMI, or Low to moderate income neighborhood? There are loans available at great rates and banks may waive both of the things your looking for if your approved.

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  • 1 decade ago

    I would suggest making an offer contingent on the seller paying your closing costs.

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