Comments on: No Money down mortgage? Credit scores of 604 and 662.?

By: markmyword

markmyword — Mon, 05 Oct 2009 03:28:59 +0000

It is possible to purchase with no money down with your scores. Here’s how it’s done:
FHA allows financing to 97% with 6% sellers concessions.
There are Down Payment Assistance (DPA) programs such as Nehimiah where when used allow you to bring $0 to the table. I’m doing these all the time in this slow market.

I don’t know of too many lenders at this point that allow seller seconds…actually, I don’t know any. This was used improperly in the past.References : 20 years in the mortgage business…and still in it.

By: Pengy

Pengy — Mon, 05 Oct 2009 02:50:59 +0000

There is no 100% financing anymore. with that amount of income and that little debt you should be able so save up, or should have already been able to save up a decent downpayment plus closing costs.
References :

By: omegahpla

omegahpla — Mon, 05 Oct 2009 02:17:59 +0000

The mortgage climate is hard right now, zero down loans are a hot button and there is a lot of trouble over it so it’s hard to get unless you go VA right now.

There is a simple solution though, you can have the seller take a 2nd mortgage for the amount needed to get the lender to lend 90% loan to appraised value and the seller to take back a 10% 2nd. This will reduce the lenders risk and I don’t see why they wouldn’t do this now, I’ve done dozens in the past. Sometimes they want 20% on the second to reduce their exposure to 80% ltv (loan to value).

They won’t consider any money not accounted for in sales price as value though (wish they would) regardless of appraised value they require a certain % of the sales price, which is regarded as the value amount, if it’s less than the appraisal.

There are other ways as well, you can do an owner contract (or carry, same thing) and then go for a refinance as the home owner, in which case the lenders are willing to be a lot more flexible on value and their loan to value %.

This works great if you have bought the home, done improvements, and then go for a refinance. You don’t have to do much for improvements, they know nothing about costs. Just some sheet rock repair, carpet, retiling and or paint, maybe a reroof can be done cheaply if you know how to get those done, then you have an improved home that the bank will refi at a higher value than you owe and not even sneeze about it.

An excellent mortgage broker who is smart and creative is extremely valuable … almost as valuable as I am ; ). They might also have ideas in how to rake up extra cash from your current situation, a little cash can grease a deal in ways that can make all the difference in how flexible you can be in what you look for.

It’s a great time to pick off some great deals right now if you can employ some creative finance. Look into lease options on pre-foreclosures, but you do need some money to play with to make that work, enough to pay off the stressing debt and get it up to date. Opportunity is that much better if you can do some repairs.

Good Luck!References : 15 realtor with building expiriance, an expert in creative finance, short sales, and many other areas of real estate sales, investment, and development.

By: chicafresa

chicafresa — Mon, 05 Oct 2009 01:45:59 +0000

the only way is to have the seller pay your down payment it is legal even FHA will let you get a house under those conditions you can even ask the seller to pay for your closing costs, with FHA your credit is not important if you havent own a home in the last 3 years, but to find a seller to pay all those expenses is going to be hard unless they are desperate to sell good luck.
References :

By: doinou

doinou — Mon, 05 Oct 2009 01:25:59 +0000

Your best chance would be to get the seller to finance, if they would be willing to go zero down, but that would be highly unlikely too.
References :