Question:

Is it possible to buy a home with 0% down payment?

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It seems like the typical down payment on a home is 20%... I'm wondering, is it uncommon to purchase a home with 15%, 10%, or even 0% down?

TIA

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  1. You may be able to buy a home with less than 20% down, but that may be an indicator that you really cannot afford the home.  You need to ask yourself:  

    1.what if you lose your job, get sick, or have a baby and can no longer carry the larger payment resulting from a smaller down, or higher interest rate.

    2. what if you want to sell your house-if the value has gone down will you end up owing more than it is worth?  

    3. can you afford to maintain the home?  Houses are expensive to keep up and everyday there is some new expense.   Nothing is worse than being in a home you can't furnish or keep nice.

    4. think about the long term consequences of a smaller down.  you will very likely be paying a higher interest rate or a variable rate which can really cost you.  Also, you will have to pay mortgage insurance which is just another monthly cost.

    The news is full of stories of people that are losing their homes because they tried to buy a home they really couldn't afford.  Don't fall into the same trap.  If you are unsure-don't rely on the realtor or loan officer to tell you, they get their commission even if you end up going bankrupt later.


  2. It's possible but I would suggest that you think that over.  If you don't have any money in savings, you stand to lose everything if something happens or you need a big repair or both.  Be sure you can afford what you want before you buy.  Better to be very sure of what you are doing.  There are also first time home owner deals where the down payment is forgiven if you live there for five years.  Check around and learn all you can before you buy.  Don't rely on someone to tell you.

  3. Yes it's possible . FHA loan and it also depends on you credit.

  4. Hi

                      Yes, it's possible but the

              interest rate would be so high.

              If your thinking of buying, save

              a little money first to help you in

              the long run. Plus you need to

              think about closing costs they

              run into thousands, either ask

              seller to eat the closing cost so

              you would be able to buy the

              house. It is a buyers market, no

              one is buying and alot of foreclosers.

    Irisheyes

  5. It wouldn't be a very smart idea. Typically you will get a better rate with a bigger down payment.

  6. YES; it is possible to purchase a home with NO Down payment ....

    It depends on the lender and your credit score .....

    The realtor selling my home, here in central Florida,  can get a buyer a No Downpayment loan with a credit score of only 595 ....

    Usually those loans are FHA loans ....

    YOU can call around to various lenders and don't forget your local independent home banks ... and inquire OR find a realror who has the connections ....

  7. Most of the lenders who made those loans have now gone bankrupt, and the other banks have become understandably nervous.

  8. You can actually buy a house and get money back, as some lenders will lend 105% of the purchase price if the appraised value is higher than the seller's price.

  9. Not any more.  Low doc loans, zero-down loans, and folding closing costs into the mortgage are no longer possible.  You must have a down payment (percentage can still vary, but you must put cash in the deal), and you must have the money to pay all of the closing costs.  And don't waste your money applying if you less than excellent credit.  The banks do not have the money or the inclination to deal with risk or risky borrowers.  

    If you have 20% down plus cash for all closing costs, and at least 650-675 FICO, and a deal priced below today's market (remember, the market is still dropping), your bank will talk to you.

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