How to buy a home without a down payment

successagent · Joined: 14 Jan 2006 Posts: 2 Location: Austin, Tx

Take out an 80/20 (100%- 1st & 2nd lien) loan to avoid PMI (mortgage insurance).

I have access to a variety of 100% programs and even a couple lenders that occasionally will take credit scores as low as 540-570 for 100% financing. These trends are beginning to run thin though. If you get a 100% loan with scores as low as say, 570, you will obviously have to pay a higher interest rate.

The higher your credit score the better your rate - The higher your credit score, the easier it is to get a loan with no money down.

I suggest doing what the gentleman below did- repair your credit to get a higher score.

:D

carlo@GetLeads · Joined: 04 Dec 2005 Posts: 51 Location: Sunny San Diego, CA

Here's an easy answer.. clean up your credit first, bring your fico upto 580 and you can get a 100% loan. That's what I did 2 years ago.

Thanks,
Carlo

carlo@GetLeads · Joined: 04 Dec 2005 Posts: 51 Location: Sunny San Diego, CA

BTW, Welcome to the forum successagent. This is where you get all the 411 in the mortgage industry.

Thanks,
Carlo

jlewis_media · Joined: 15 May 2006 Posts: 2

i agree, clean up your credit score, and everything comes easy

nicpon · Joined: 05 May 2006 Posts: 6

How much intrest on mortgage and piggyback can you deduct each year?

dsickler · Posted: Wed May 17, 2006 6:35 am Post subject:

You should be able to deduct mortgage interest expense on Schedule A of an itemized tax return on loans up to $100,000 over and above acquisition indebtedness on a qualified residence. Unless the loan proceeds are used to increase the acquisition indebtedness by doing home improvements. Keep in mind there is a cap. You can only deduct the interest up to a $1,000,000 loan too.

In other words, what you bought the house for, plus home improvements, plus $100,000; not to exceed $1,000,000

NOTE: As your mortgage gets paid down, your acquisition indebtedness goes down. for example, if you pay off your house. your acquisition debtedness is now $0.

David.

studentdone · Joined: 15 Apr 2006 Posts: 13

Could we still do %100 financing with the following scenario?

My scores are as follows:
731 - Transunion
688 - Experian
673 - Equifax

Husband's medium FICO is 573 - His low score due to credit cards used when he became injured :( - now on total disability - but would like to use his disability income to qualify for a little more.

We have saved some money, but would like to keep some money in the bank.

Let me know what you think.

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

Well, on the non-prime side of business it generally goes based on the primary wage earner. So if you earn more than his disability then that should work out for you.

Alternatively, depending on his credit you may be able to use an FHA loan. I've heard rumblings that there may be a 100% option for these out in the near future (or now??) so that may be a possibility still, if not, they are generally 97%+.

dsouthr · Joined: 24 Jun 2006 Posts: 15 Location: Columbia SC

Yes, there are several ways to buy a home with no money down, there are several ways to buy a car with no money down. Thou I have bought something like 30homes in my life and more cars than that, I have personally never bought a home or a car without putting a good bit down.

For me the rules has always been, if I could not put enough money down to get the terms I wanted, then I could not really afford the house or the car. Sure, I have lived below my means at times so that I could stock pile the money to get me into what I wanted, but I would raher not have a thing than to have it and lose it because I made a poor financial decision going in.

I fear that way to many have been pushed into deals before they were financially ready only because someone else was going to gain a huge profit off the transaction and a customer that wants something badly is easily lead by poor advice. We are watching the FC rate increase right now, we have a nasty housing bubble in major markets right now, because a lot of good people are acting on poor advice.

I think it is our job as a professional to give the best financial advice we can and at times that means explaining to a customer why now is not the rigfht time for them to buy that home they so badly want. Just because you can get a guy qualified right at a 50% DTI on that interest only program, does not mean that customer can withstand a slight increase that out paces his potiential increase in income. Sometimes you have to do the right thing and not worry about your comission check. If you do the right thing enough, your comission check will be a lot more constant and your repect as well as referral base will explode upward!