Do 0% down loans still exist? (PMI, loan, interest rate, premium)
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My last 2 homes I was able to buy with 0% down, but after moving to a new state and renting for a couple years so I could pay down student loan debt, I am not sure if such loans still exist? I have excellent credit history, and a 6-figure income with stable work history. I am looking to buy below my means at about 200,000 or less. The reason I dont have any savings to speak of is I have been putting almost 3000/month toward debt. (I have a Masters degree, so I still owe about 30,000, but thats down from 50,000) Im frustrated with renting and spending 1400/month for an apartment and would like to buy in the next 3 months. I can pay closing costs if needed with no problem.
My last 2 homes I was able to buy with 0% down, but after moving to a new state and renting for a couple years so I could pay down student loan debt, I am not sure if such loans still exist? I have excellent credit history, and a 6-figure income with stable work history. I am looking to buy below my means at about 200,000 or less. The reason I dont have any savings to speak of is I have been putting almost 3000/month toward debt. (I have a Masters degree, so I still owe about 30,000, but thats down from 50,000) Im frustrated with renting and spending 1400/month for an apartment and would like to buy in the next 3 months. I can pay closing costs if needed with no problem.
Yes, 100% funding exists.
You may pay a little higher interest rate, but it is out there.
Of course, you will have to qualify with a lender.
We have even seen re-emergence of 3% down funding, and the Seller allowed to contribute the down payment and closing costs.
My last 2 homes I was able to buy with 0% down, but after moving to a new state and renting for a couple years so I could pay down student loan debt, I am not sure if such loans still exist? I have excellent credit history, and a 6-figure income with stable work history. I am looking to buy below my means at about 200,000 or less. The reason I dont have any savings to speak of is I have been putting almost 3000/month toward debt. (I have a Masters degree, so I still owe about 30,000, but thats down from 50,000) Im frustrated with renting and spending 1400/month for an apartment and would like to buy in the next 3 months. I can pay closing costs if needed with no problem.
Why not just save up that $3000 per month you were spending on debt and build up 20% in about a year? You could be out of debt and have 20% in two years with the numbers you gave. IMO it's a terrible idea to buy a home with 30k in debt, plus no savings, it doesn't matter the type of debt or your credit history. Have you read the most recent numbers on housing, you are probably better off waiting to buy.
It is flat out stupid to "reduce debt" and then end up with a higher interest rate...
The advice of msdmoney is excellent -- if you indeed do have excellent credit and the ability to redirect income from debt reduction toward savings it makes no sense to accept the significant rate premium associated with no money down loans.
Save you 20% and you get a better rate, avoid PMI and will appear to lenders / sellers as a much more serious shopper.
Quote:
Originally Posted by msdmoney
Why not just save up that $3000 per month you were spending on debt and build up 20% in about a year? You could be out of debt and have 20% in two years with the numbers you gave. IMO it's a terrible idea to buy a home with 30k in debt, plus no savings, it doesn't matter the type of debt or your credit history. Have you read the most recent numbers on housing, you are probably better off waiting to buy.
Think about it, if you have no money is it really a good idea to buy a house? What happens the first time you have a plumbing problem, roof, furnace, etc. How are you going to get the money to fix it?
If your renting the landlord will fix it or you can just move.
Think about it, if you have no money is it really a good idea to buy a house? What happens the first time you have a plumbing problem, roof, furnace, etc. How are you going to get the money to fix it?
If your renting the landlord will fix it or you can just move.
At a wisely managed six figure income, and a very affordable price target within that income, good personal cash flow provides the means for upkeep.
I thought that the OP's scenario was a LOT better than that of many other buyers.
if interested check out NACA ( NACA ) for more details.. not sure which state you in.
0% down, low interest rate, NO PMI, NO closing cost.
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It is flat out stupid to "reduce debt" and then end up with a higher interest rate...
