First time home buyers: discounts, no down payment???

Question

my husband and i are thinking about buying a home for the first time. we have heard that first time home buyers can receive discounts. we also heard that we can have an easier time getting a loan and maybe not have to have a down payment.

is someone blowing smoke up my *** or is there discounts and help out there for first time buyers? thanks

Answer 1

I never got a discount. As far as a down payment, my husband and I took loan out for more than the home. They took extra money used it for down payment.  Example: house is 149,999 you would take loan out for 154,999. The 5000 would go towards your down payment.  

Answer 2

Many incorrect answers on here.

FHA programs will allow you to borrower 97% of the purchase price or appraised value, whichever is less.  You will need the 3% down, plus closing costs, plus 3 month of mortgage payments (including taxes and insurance) left over as "reserves".  The income requirements are very strict, with no flexibility.  FNMA and FHLMC programs are more flexible, but are no longer lending 100%.

There were many 100% and even 103%, 107% programs available at one time; these have all gone away as lenders have tightened underwriting guidelines.  You may be allowed to have the seller's credit up to 3% of the purchase price toward your closing costs, which would help.

As far as discounts, the recent legislation enacted gives first time home buyers who meet certain income restrictions a $7500 tax benefit - that could be what they are referring to.

Best thing to do is get several opinions and loan offers in writing, and have anything you are not sure of reviewed by an non-partial expert.

Answer 3

While Jaidens answer seems the most correct to me...

There is possibly another option. Were either you, or your husband in the military? If yes, there is a VA loan.

I'm not sure of the specifics of it (you'd need to talk to a loan officer to get those) here's what we did:

VA loan

0% down

Seller pays 5% consession for closing costs and to buy down interest rate.

I'd speak to a loan officer directly

Answer 4

This is totally true.You can consider an fha loan or fannie mae.My wife and I did a FHA and we spent nothing as a down payment.

Answer 5

Take a look at www.fha.gov.

Answer 6

i think no matter if you're buying your 56th home or your first, theres always gonna be a down payment.

maybe you guys should be on the show property virgins from HDTV

Answer 7

NO bank will give out 100% financing anymore. You will need at least 10%, and that is if you go with a FHA loan, PLUS fees, and fees for you lawyer. Always ask the Lawyer how much you would have to bring to the closing, the bank wont include their fees, and make sure to get everything in writing as far as the fees go.

Also avoid Variable rate loans, and Interest only loans. try to get a fixed rate, but if you are in a bind, variable rate loans are pretty good, but just know that the rates will increase after 5 years.

Answer 8

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Answer 9

There are discounts right now for first time home buyers - and buyers in general.  Getting 100% financing is probably going to be tough now.  I haven't heard of any banks doing 100% financing in the past 6 months.  Talk to a lender - they will be able to help you find what the best loan programs they have available specific to your needs.  Good luck!

Answer 10

They're blowing smoke ... no matter how it is worded, you will have to have to come to the table with closing money.