Can I get a home loan right now with little or no Down Payment?

I want to buy a house so I can take advantage of the $8000 tax credit. But I only have about $5000 saved right now. My credit is all good but Im only 19 so I dont have a long history. I have a co signer with good credit. If that helps. Thanks for the help.

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  • 1 decade ago
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    ok so lets see you have 5000.00 to put down but does that amount to all you have? The bank will not lend to you at any age if your bank account is empty after the down payment. Lets move on. you could qualify for an FHA loan 3% dn. as long as you can live up to the requirement's set by them you will probably still need the co-signor because of your age. look at townhomes or small fixer uppers depending on where you live. Check out INDYMAC.COM for their foreclosures and other banks

    Source(s): re broker
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  • Anonymous
    5 years ago

    Almost sure that you might find many financial solution at: financial-care.info-

    RE Can I get a home loan right now with little or no Down Payment?

    I want to buy a house so I can take advantage of the $8000 tax credit. But I only have about $5000 saved right now. My credit is all good but Im only 19 so I dont have a long history. I have a co signer with good credit. If that helps. Thanks for the help.

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  • Anonymous
    6 years ago

    I'm confident that you must find every financial solution at: financial-care.info-

    RE Can I get a home loan right now with little or no Down Payment?

    I want to buy a house so I can take advantage of the $8000 tax credit. But I only have about $5000 saved right now. My credit is all good but Im only 19 so I dont have a long history. I have a co signer with good credit. If that helps. Thanks for the help.

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  • 1 decade ago

    I can think of three possibilities for you: FHA, HUD foreclosures and Kiddie Condo" loan.

    FHA - 3.5% down payment, and seller can contribute up to 6% toward closing expenses, but you need income history.....

    HUD houses - At least in Texas, you can buy HUD houses with a $100 down payment if you offer the list price. HUD, as seller will only go as high as 3% toward your closing costs though...

    Kiddie Condo - FHA has a program, often used for college students whereby they purchase a home with parents as co-signers and the parents get dropped from the loan after about a year (I think a year) of payments made on time.

    On any of these, if cash in hand is the problem, you are allowed to get a gift from your parents for closing costs.

    Not sure if the Kiddie Condo loan would still qualify you for the tax incentive since your parents probably already have a home.

    Source(s): 15 yrs San Antonio Realtor
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  • 1 decade ago

    You can put as little as 3.5% down with a FHA loan. That would be somewhere around$143,000 for a purchase price. Remember you also have to have money for the closing costs, unless you get that financed as well. So yes, you should be able to buy something with $5000 down. Go meet with a lender- they will be more than willing to talk with you about your options. Good luck and congratulations for getting such a head start!

    Also be sure to get a pre-approval letter from the lender- especially if you're looking at foreclosures. When I was looking for a house (almost all bank owned) every seller required one before looking at my offer.

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  • 1 decade ago

    You may use a co-signer, just remember that the co-signer is just as responsible to make the monthly mortgage payments as you are and must also qualify for the mortgage loan, the same as yourself.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some use to you, good luck

    "FIGHT ON"

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  • Jackie
    Lv 7
    1 decade ago

    You saved $5000 at 19? I wish I were as smart at that age. Your credit score has to be over 650 and you need to have 3.5% of your loan as a down payment. $3500 on a $100,000 loan.

    EDIT: oh plus closing costs and more for fees.

    Source(s): !
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  • 1 decade ago

    You probably will not qualify due to not having a full 2 years job history - unless you have had a full time job for 2 years lenders won't look at it. You need a 620 credit score or better & 3.5% down to go FHA.

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  • 1 decade ago

    How much do you make per year? What bills do you have?

    You may be able to get a FHA loan that will only require 3.5 % down.

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    1 decade ago

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