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Can you still buy a home with "no money down"? Is that a thing of the past in today's market?

By
Mortgage and Lending with Jamie Russen - Greentree Mortgage NMLS ID #95705

Have you heard the speculation that in today's real estate market, that you need as much as a 20% down payment??? I am featuring a program that that will really surprise and excite potential home buyers and allows you to buy a home with no money down. I have been specializing in this program since 2003 and some of these loan features are:

  • Government loan program
  • No money down
  • 620 minimum fico score
  • Seller can pay ALL of your closing costs
  • Not limited to first time home buyers
  • 30 year fixed rate loan
  • No pre payment penalty

So yes, it is possible to become a homeowner with it costing you less than a security deposit! This program does have income and geographical restrictions but you would be absolutely amazed at some of the area's that are eligible for this program.

Most of the reasons that I hear from a potential home buyer for being afraid to purchase a home is that they do not want to use up all of their savings for down payment and closing costs.  The reason is a valid one in these difficult times that we are all experiencing.  I will give an example.....I have been working with a customer who is located in Western, Pa., he is the sole source of income for his young family and to be honest, he was worried about using all of his savings to buy a home.  He expressed that his savings is for emergencies and that if he uses it all for a down payment and closing costs that he would not have anything to fall back on.  However, if he bought a home and used this program, he could possibly get into his home for less than it would cost for a security deposit to rent an apartment!  And he would still have his savings to fall back on!! Why not take advantage of this no down payment program?? Recently FHA has become the most popular loan product for first-time home buyers; however there is a 3.5% down payment requirement and a limit on seller concessions.  The underwriting guidelines are similar on the two products but there are definitely advantages with one over the other as far as down payment requirements.  

Comments (3)

Ann Gioe, CRP, GMS
Berkshire Hathaway HomeServices Indiana Realty - Indianapolis, IN
Central and Southern Indiana Real Estate

Is this the USDA rural housing program?  I've had a couple clients use it - a great deal!

Dec 01, 2010 02:40 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Jamie,

Great post; So many buyers can benefit from lenders that don't just use 1 or 2 " conventional" loan products. 

Steve

Dec 01, 2010 03:03 AM
Jamie Russen
Jamie Russen - Greentree Mortgage - Voorhees, NJ
100% Financing Specialist

Thanks! Yes, I am referring to the USDA rural housing program. It's also a great way for realtors to market listings they have.

Dec 01, 2010 03:17 AM