100% Financing For 1st Time Home buyer?
Does anyone know of any sites that will do 100% Financing for first time home buyers? We dont have any bad things against us on our credit just havent built up any yet. We are currently renting and want to get out of the place because the landlord cares about nothing but money and wont fix anything. Any advice or knowledge will help! Thanks
- LandlordLv 710 years agoFavorite Answer
The USDA loans are already out of money for the year, or so I have heard. I have not verified it.
That leaves only a VA loan, if you or your spouse is a vet you would be able to obtain a VA loan with nothing down.
- 10 years ago
While I agree with others that if you don't have a down payment, waiting might be a better option, It does not negate the fact that there are options out there. Other than VA and USDA, there are HUD Repo homes available for $100 down (Check with a qualified RE agent to show you these properties) and there is a program that offers .5% down. This is an FHA loan where the down payment is 3.5% but you take out a 15 year loan for the .5% at a 3% interest rate, just as if it were a credit card. Example: $300,000 purchase, 3.5% down = $10,500. You put down $1500 and $9,000 is amortized over 15 years at 3% ($62.15/month) There is no prepayment penalty on this loan so many are taking advantage of this and paying it off with the tax credit.
These programs are not for everyone, but they can be beneficial to some. Have a qualified professional explain it to you and see if it's right for you.
- golferwhoworksLv 710 years ago
there are 2 sources of 100% loans for sure. The VA and the USDA. As stated the USDA needs Congress to fund them again at this point and that will happen some day. There may be other things you can get like some states like TN has a grant program for first time buyers.
Call a local mortgage professional in your area to get qualified to buy and see what if any grants are available in your state
I am a mortgage banker in TN
- 4 years ago
Work on your credit. Find out if there are any errors, and make your payments on time for the next 6 to 12 months. You will see your credit begin to improve. Also, put together a savings account, not for a down payment, but for costs associated with your new home. After 6 months of working on your credit and building up some reserves, get yourself an FHA loan. These are government loans, typically for people with credit scores between 560 and 620. The interest rates are competitive and there is a lot of flexibility. Definitly take the fixed rate loan, the lender might encourage you to take an adjustable rate... but don't do it.
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- godgedLv 710 years ago
Even if you get a 100% loan through a program like USDA, you are still going to need to bring closing costs, which can be thousands of dollars, into this transaction. Unfortunately, you are not in a position to buy. You have to find ways to save save save for this. I sold a house to a young couple who hated renting, so they put a picture of a house in their wallets, so every time they went to buy something, they would have to look at that house picture and decide what was important. They had two cars, but one was an old, not so pretty clunker. Since it was older, if something needed repaired, he could do it himself. They took second jobs, did staycations, severely limited any unnecessary spending, and got themselves ready to buy a home. I just ran into them in a store recently, they are just thrilled with their house. They had to make sacrifies, but they did it. And that is what you are going to have to do.Source(s): Oregon Realtor
- HEATHERLv 610 years ago
Move to a better rental and save up some money. No one is doing 100% financing anymore, unless it is a rural USDA loan, and trust me - you don't want to go into homeowership with no money saved up.
- RealtoratheartLv 610 years ago
Not likely to find any either. Those days are over! You will need at least 3.5% for a downpayment.
- knowitallLv 710 years ago
If you do not have a down payment plus pre-paids, you are not ready to be a homeowner.
- dmnshnlz1Lv 510 years ago
unless you believe in 100+ % interest rates.... yeah why not....<--- in jest!