I want to buy a house, but i don't have enough money to make down payment...what should i do?

Question

I've been moving and renting for how many years when icame here in United States. The rent cost around $ 400.00 - 600.00 monthly! But now I am satisfied where I'm living, yup i am still renting! $500.00 monthly 1 bed apartment and every year the rent is going up. I'm settled where i am now all i need is a house! That would be my first home ever....For 8 years living in United States i keep renting, sniff! All I need is a simple house not fancy yup that would be great start for me. Any way I can do some decorating slowly.

That is my only wish right now. I don't have enough money for down payment, what should I do?

Any help would do :) thanks so much all

hugs,

iqcfem

Answer 1

set up a savings account and pretend you have a home loan. Each week (or month or fortnight) put the amount the payments on a home loan would be each month (less the rent you are paying). If after 6months you find you can make the 'repayments' the apply for the loan using the money from the account as a deposit.

If you find you struggle to save the amount of the repayments each month then maybe you need to rethink getting the loan.

The other option is getting mortgage insurance which will allow you to borrow almost the full amount. This is pretty expensive though.

Answer 2

You are only paying $500/mo for a 1 BR apt?  How on earth did you ever find something so cheap?  You have a great bargain.  That is less than half the costs you will have to pay each month for house payments, yet you still have not saved up a down payment?

To get a house, you need a down payment, closing costs, and some reserves.  Then in addition to the mortgage, you must pay homeowners insurance, property taxes, electric, gas &/or oil, water, sewer, trash collection, phone, internet, cable/satellite TV.  Don't forget you have to mow the lawn, maintain your yard/garden, shovel snow, plow the driveway -- or else pay someone to do it.  And there are maintenance expenses on everything from the roof to the refrigerator.

You have only been here for 8 years.  Kwitcherbitchin -- how spoiled are you?  If you cannot save for a downpayment now when you pay so very little for rent, how did you ever expect to pay for a house?

Answer 3

1. in jenral, rent is cheeper.  Very hard tu bi sumthang for <=rent.

2. If yu havent saved up nuff for down paement after yeers, yu need tu.  Yu need tu budjet.

3. yu kan rent a hous (insted av apartment), much cheeper than bi it (most plaeses).

4. maby yu kan get a lees with opshun tu bi...1 yeer lees=rent,

then tern it intu a morgage.

5. if yu want a small hous, gotta be old hous.  Home bilders dont

make small houses...havent for last 20 yeers.

Answer 4

Not so muc a trade secret but you could use your credit card to get a loan & then refinance the whole lot with a mortgage if you are brave enough.

Or you could use google to look for no-deposit mortgage deals but it will cost you a elephant!!

Answer 5

Sounds like you need to save some more.  Have you talked with any lenders about what you might quality for now? That should be your first step.  Even if you don't qualify today or this week, they will be able to tell you when a good for you would be.  In the meantime, save more money for that down payment.  Consider 3% of the purchase price as your bench mark.  If you want to avoid paying PMI (insurance for the lender) you would need to put 20% down.

Answer 6

Part of getting approved for a home loan is that you have shown the lender that you have a strong track record of savings.  Each month you set aside a little money for the future.  If you don't do that , you are more risky.  The bank will be loaning you a 30 year loan.  They know that , at some time in the next 30 years, you will go thru a difficult financial time.  If you are good at saving, you will have the money to get thru a tough time.

You can get a loan but you will have to pay a higher interest rate because you are more risky.  You can get a loan with little money down.  Your interest rate and loan costs will be higher.  You can wait a while or just go ahead today and pay a little more.  You could be moving in to a house in 30 days.  Get to work.