Can we get a mortgage loan for a first time home buyers without deposit?

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Wife and I want to buy a house in out community and we wanted to know if there are any good programs that would cover closing costs and other expenses or add it to the loan? We dont have much saved up due to the fact that our current rent is $1200 a month and we paying other bills as well. The house we are looking at is a $114k house 4br 2bath. It would be a smarter choice for us to get the house since out payments would be $650-700 a month allowing us to save remaining towards paying off our other bills.
What are some of the good institutions that you can recommend for us. We live in NY state if that makes any difference.
Thank You

9 comments to Can we get a mortgage loan for a first time home buyers without deposit?

  • Glenn S  says:

    Unless you are qualified veteran you will need at least 3.5% as a down payment on a FHA loan, plus closing cost. USDA does a zero down paymant loan program, but the properties need to be in the boondocks where most people don’t want to live.

    You only cloice is to just keep saving or get a family member to give you the required down payment.

  • linkus86  says:

    Do you mean down payment? You will need a down payment unless the house exist in a rural community, allowing for USDA loan, or if you can qualify fot a VA loan. The next option is FHA which requires a 3.5% down payment.

    First, go speak to a lender to discover your borrowing options. Second, get in contact with a Realtor to represent you in the purchase. The realtor will end up saving you money (their commission comes from the sellers procedes). The realtor can show you how to arrange the seller pay your closing costs too.

    You may find extra help through state government if you are lower to median income buyers. See link

  • Rob  says:

    Sorry to see u mis and under informed on
    house buying.

    your numbers are off especially in NY.

    if u having hard time now with rent,
    u both want second jobs with a house.

    the house costs more to operate than u
    have been told..

    suggest u find , read, study, apply info from
    “house buying kit for dummies” Tynsen.
    “total money make over” Dave Ramsey.

    both will save u 10,000s$ and decades of
    hard costly life lessons.

    if u looking to buy 114K, u need an
    income of 30K minimum. u need at least
    5000 down plus 4000 -7000$ closing costs.
    u need an extra 2000 -4000 for house setups costs.

    these u need from your pockets not ‘programs’.

  • Pascal the Gambler  says:

    Only if you qualify for a VA or USDA loan. Otherwise minimum is 3.5% down plus closing costs with FHA.

  • Sassy  says:

    Buyers no longer do 100% mortgages, no less roll the closing costs into the mortgage itself. This gives the buyer no intensive to not walk away from their ‘investment’ in a year or two if they have little to no equity built up.

    You will need to put up at least 3 months of insurance and taxes into escrow when you close, not to mention a % of the actual purchase price. Until you have a sizable amount saved up for not only the down payment, but to cover out of pocket closing costs, most lenders will not consider lending to you.

  • richard t  says:

    If you are a first time home buyer or have not had your own home for at least three years there are programs run by the State of New York (not scammers, be careful) that might help with your downpayment. Here is what their website says “The State of New York Mortgage Agency (SONYMA) offers five mortgage programs to assist first-time homebuyers with the purchase of a home in New York State.

    Our five mortgage programs feature competitive interest rates, low down payment requirements, flexible underwriting guidelines, no prepayment penalties and down payment assistance. Each of these features are designed to make your home purchase more affordable. All SONYMA loans are financed through the sale of tax exempt bonds.”

  • real estate guy  says:

    Lets make it clear, the reason you don’t have savings is because you have not made saving something that you wanted to do. You spend more then you make. There are no other reasons.

    In regards to the above question. USDA loans are 100%. FHA is 3.5%. On both loans, you can have the seller pay the closing costs. OR the lender can pay some or all of the closing in exchange for a higher interest rate.

  • monique  says:

    If you don’t have any savings at all, consider waiting until you have savings. I bought my first home several years ago and when things need to be repaired and replaced, there is no landlord to call……..all you can call is your own check book. You could always try and find a cheaper place to rent until you pay off some of the other bills you are paying, so you can start saving. I can tell you as a new home owner that expenses will come, and if there is no money available…..you will end up getting behind in fixing things. Some home owners may put a bandaid on the situation, but over time, when problems don’t get fixed properly, it could cause serious problems in the future.

    The only mortgages out there that don’t require a down payment as USDA loans and VA loans. At minimum, even FHA loans require 3.5% down. So if you used FHA, and lets say you paid 110,000 for the house….you would need $3300 just for the down payment. Closing costs are separate from the down payment, and will include application fees, title fees, property taxes, home owner’s insurance, etc. Don’t forget to factor in your home owner’s insurace and property taxes if you plan on using escrow….that will add to your monthly mortgage payment. I don’t know how much the property taxes where you reside, but if taxes were around $1200 and your home owner’s was around the same……….for a 30 year mortgage at 3.75% fixed, your payment would be approximately $700.00. My assumption is that your property taxes will probably be slightly higher than $1200, but that is just an assumption. Definitely check out the property tax rates where the house is located to get an idea of that cost. Also, most mortgage lenders (not VA) will charge you what is called PMI (primary mortgage insurance) until you have paid 20% of your mortgage. Mortgage lenders determine how much their PMI will be…….so it could be $90 for one lender and $125 for another. The PMI is added into the mortgage. So if the PMI is approx. $100……that takes your mortgage payment to $800 monthly.

    Mortgage calculators: http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx?MSA=7040

    http://www.mlcalc.com/#mortgage-110000-3-30-3.75-1200-1200-0.52-11-2012-year

  • loanmasterone  says:

    If you are a United States military active duty, retired or got out of the military under honorable conditions you could be eligible for a VA mortgage loan where you would not be required to have a down payment. For the sale price of the house you mentioned in your statement you would be required to come out of pocket for approximately $1,500.

    FHA has a mortgage loan program where the normal down payment would be approximately 3.5% down payment. Under the FHA mortgage programs you may have someone donate(called a gift) this downpayment to you. You may have a relative, charity group or church gift this to you.

    You might inquire of your mortgage loan officer of another FHA mortgage program where you would be able to obtain a 2nd mortgage loan of approximately 2.5% of the 3.5% and have a downpayment of 1% of which that could be a gift to you. The 2.5% 2nd mortgage loan might not be necessary to be repaid provided you stay and use the house purchased as your primary place of residence for in excess of 10-15 years.

    All states have lenders that would be authorized to do FHA mortgage loans, you would have to contact a lender that is authorized to do FHA mortgage loans in your area.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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