Jan
23
What Is My First Step Into Buying A Home With No Money Down?
ByNow seems to be the time to buy. I have always rented and want to make an investment but no major money to put down. I have a very good income, but also have some big bills for right now; hence not much to put down. My credit is pretty good, but again, I have some bills I am paying off. I have about 35K in my 401k if that could help leverage the loan.
Any ideas? I live in Miami, Florida – lots and lots of empty houses and condos all over the place waiting for someone to buy them.
5 Comments
January 23rd, 2010 at 10:35 am
Your first step is to save up for a down payment, which is currently 3.5 percent under the FHA guidelines. The days of buying a home with no money down are gone forever, and the word “leverage” is worse than the F word now. Don’t worry about missing out on the good deals that are out there. The real estate market is not going to rebound anytime soon, and you will not miss out.
January 23rd, 2010 at 2:10 pm
I don’t think it will be possible to get a zero down mortgage anymore. With federal tax credits etc, you should have some help with the down payment. Regardless, you will likely at least 3.5% down with a FHA loan for a first time buyer for a single family house or condo / apartment in a complex with +50% owner occupancy. That’s assuming good credit rating and relationship with a bank.
January 23rd, 2010 at 3:35 pm
Well, you could cash out the 401k for a down payment.
The only no money down loans right now are VA(500 down) or USDA. Most likely a condo will not qualify for USDA, because it’s only rural properties.
That’s just the way it is right now.
January 23rd, 2010 at 7:15 pm
Join the military reserves. With a VA loan you can buy with no money down and no PMI attached to the payment.
If you don’t know what a PMI is, you’re not ready to get a loan.
January 23rd, 2010 at 7:23 pm
Your first step is to forget it until you save up some money. Even an FHA loan requires at least 3.5% down plus closing costs.