Home Loan: Are There Any $0 Down Loans Anymore

[SSThunder]

Basically I used two loans to purchase my 1st house(80/20) and didn't have to put any money down. The ex and I are selling that house and I'm looking to buy another. I've got some cash in the bank but would rather pay off a monthly bill(credit card) than put money down or pay closing cost.

 

What loan programs are available that can cover 100% without me putting money down?

 

On my 1st home we had the seller pay closing cost so that's my plan again but I don't want to pay PMI so is this possible anymore?

 

Seems like ARM loans are almost gone, but I was considering one since I don't plan to be in the house longer than 5 years max. After the truck is paid for and my daughter isn't in daycare, I'll have more extra cash to put toward a better house

 

Need some input!!

[12'SROCK]

dont think any lenders do 100% financing any more. . . . .

[RacerJJ]

I was able to get in on an FHA down payment assistance program with no money down at my condo. This was 8 months ago but I know that my place is still offering it for the rest of the month. The program was called the Nehamia (sp) Program. They paid my closing costs, gave me a down to pay my interest rate down, and gave me new appliances. I didn't get some screwy rate either. 30 year fixed at 5.0%. Look into it and good luck.

[scooter3]

I was able to get in on an FHA down payment assistance program with no money down at my condo. This was 8 months ago but I know that my place is still offering it for the rest of the month. The program was called the Nehamia (sp) Program. They paid my closing costs, gave me a down to pay my interest rate down, and gave me new appliances. I didn't get some screwy rate either. 30 year fixed at 5.0%. Look into it and good luck.

 

I think this program is for first time home buyers. We did this as well on our first home, but that was 2 houses ago. I know there is a 0 down program right now until the end of October I think. Pays up to $7000 on closing costs. Your Realtor should know about this. Good luck.

[Black2003SS]

Being the resident mortgage expert, I will chime in.

 

Most lenders are not doing 100% financing any longer mainly because Fannie Mae and Freddie Mac quit buying or "securitizing" the loans. The only true 100% financing deal I am aware of is through a VA loan which you must qualify for with military service connections. That does not mean that there aren't any other programs out there, but tread lightly and ask alot of questions prior to signing anything.

 

The next best thing is what RacerJJ mentioned, the FHA loan programs. There are down payment assistance programs out there like he received, but the downside is that you are pretty much locked into those specific properties.

 

FHA without down payment assistance is a valid choice. FHA only requires a 3% down payment and requires just a minimum middle credit score of a 580 FICO. Total debt ratios must be less than 41% and housing expense ratio must be less than 31% to qualify. (monthly debts like credit card payments, vehicle payments, secured/unsecured loans etc. divided by monthly gross income. Does not include cell phone bill, utilities etc. in calculations.)

 

With 3% down, obviously, you would only need $6k on a $200,000 home, which isnt bad. The FHA loan is a 30yr fixed loan with rates as good or better as conventional 30r fixed loans. PMI is required on all FHA loans, but its much more reasonable than on conventional also. VA loans are the only loans that have no PMI any more that I am aware of. Some conventional loans used to offer lender paid PMI, but you typically took a slightly higher rate in return, so it was a wash in most cases. There are always new gimmicks and programs emerging so who knows what is actually out there.

 

FHA is only for primary residence purchases and refinances. That is why alot say its for first time home buyers.

 

Finally, you can ask for sellers concessions (seller of home pays closing costs). With FHA, you can ask for up to 6% of the selling price to cover title work, any points, related closing fees, etc. So you could essentially just go to the closing table with your down payment.

 

Its a buyers market, jump on it if you can. Sellers and realtors are desperate and ready to deal. You can steal a house. I also recommend looking for local auctions of foreclosures and find a killer deal.

 

 

(sidenote: there are no such things as "first time" home buyer programs, its just a marketing scheme to get vulnerable people to call in and get screwed)

[SSThunder]

Thanks for the info guys. I did have one loan guy tell me about the FHA loan. Plus the property had a sign in front for one bank that offers 100% financing so I called them. Bad news is my income is too high. They want your yearly income to be 80% or less of the median income for the city. I do qualify for 97 LTV loan though because my income isn't higher than the median so I'm meeting with them Monday because they also don't charge PMI because the loan is "in house". I've got to crunch some numbers to see what I can work out. I've got 2 weeks of vacation time I should be able to cash out, plus the ex and I will close on our house at the end of September.

[Black2003SS]

That doesnt sound right to me. No loan is "in house" unless it is with either a credit union, local bank, or mega direct lender/loan servicer like bank of america or gmac. I wouldnt put it past them to tell you no pmi and then it shows up on your first mortgage coupon/statement, happens all the time and there is really no legal action to take once the paperwork is signed. Please pm who this is and we can chat privately about it some more to make sure it is legitimate. Dont worry, I dont work for a mortgage company anymore so I wont be trying to steal your business.

[SSThunder]

That doesnt sound right to me. No loan is "in house" unless it is with either a credit union, local bank, or mega direct lender/loan servicer like bank of america or gmac. I wouldnt put it past them to tell you no pmi and then it shows up on your first mortgage coupon/statement, happens all the time and there is really no legal action to take once the paperwork is signed. Please pm who this is and we can chat privately about it some more to make sure it is legitimate. Dont worry, I dont work for a mortgage company anymore so I wont be trying to steal your business.

 

It's a local bank here. The bank name is BB&T I think. I guess the only way to get out of PMI is to go with a local bank since the 80/20 loans I used on my last house aren't really available anymore.

[Black2003SS]

You're good then. I was just worried you might have been dealing with a dirty broker whom are notorious for lying to their clients just to get the deal done. BB&T is pretty good if its the one I'm thinking of, midwestern chain.