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Old 07-22-2008, 10:48 PM
 
Location: Norfolk, VA
1,036 posts, read 3,959,082 times
Reputation: 515

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Especially as a "new investor", 0-5% down is usually a risky option. It is almsot sure there will be negative cash flow if you are planning to rent it out. If you are planning a flip, you need really need serious reserves and a backup plan if the sale does not go through.

Also, although there are still 0-5% down options for owner occupied homes.... I don't really know any investment programs with <10% down payment and substantial reserves/credit/income.
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Old 07-24-2008, 11:33 AM
 
Location: Philadelphia PA
260 posts, read 942,368 times
Reputation: 127
I would like the name of the lenders that still have -0-5% down payments...please private message me...I am moving soon, and would rather spend this money I got into a down payment for a house than renting. It will be cheaper to buy than rent...by my credit is kinda crappy. Darn it...
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Old 07-24-2008, 11:38 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,537,846 times
Reputation: 1009
FHA will allow it...
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Old 07-24-2008, 11:57 AM
 
Location: Philadelphia PA
260 posts, read 942,368 times
Reputation: 127
Quote:
Originally Posted by renriq02 View Post
FHA will allow it...
I thought about it...but it is so hard to get a competent broker to work with me and my husband. My credit is looking up, gettting better and I really don't have much debt (except student loans) problem is, I'm not the bread winner in my house, my husband is the one that has the income but his credit has gotten a little crappy in the past few months. We are moving, because he is getting a new job and taking a pay increase of $25,000 once he get out the Navy next month.
I just wish there was something we could do...for sure...we could put down 5% on a house...I rather do that than give it to the "rent" man with the deposits, pet deposits and all that stupid crap...and still pay rent upwards of $1500 for a house big enough for my family.
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Old 07-24-2008, 02:03 PM
 
5,338 posts, read 14,071,350 times
Reputation: 4692
Quote:
Originally Posted by yayamyers View Post
I thought about it...but it is so hard to get a competent broker to work with me and my husband. My credit is looking up, gettting better and I really don't have much debt (except student loans) problem is, I'm not the bread winner in my house, my husband is the one that has the income but his credit has gotten a little crappy in the past few months. We are moving, because he is getting a new job and taking a pay increase of $25,000 once he get out the Navy next month.
I just wish there was something we could do...for sure...we could put down 5% on a house...I rather do that than give it to the "rent" man with the deposits, pet deposits and all that stupid crap...and still pay rent upwards of $1500 for a house big enough for my family.
So, it's the brokers fault that you and your husband have credit issues?

Recent late payments are going to be a real problem no matter who your broker is.
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Old 07-25-2008, 02:18 AM
 
Location: Norfolk, VA
1,036 posts, read 3,959,082 times
Reputation: 515
Quote:
Originally Posted by yayamyers View Post
I thought about it...but it is so hard to get a competent broker to work with me and my husband. My credit is looking up, gettting better and I really don't have much debt (except student loans) problem is, I'm not the bread winner in my house, my husband is the one that has the income but his credit has gotten a little crappy in the past few months. We are moving, because he is getting a new job and taking a pay increase of $25,000 once he get out the Navy next month.
I just wish there was something we could do...for sure...we could put down 5% on a house...I rather do that than give it to the "rent" man with the deposits, pet deposits and all that stupid crap...and still pay rent upwards of $1500 for a house big enough for my family.

If he was in the Navy you can look into a VA loan, but its going to be hard if "his credit has gotten a little crappy in the past few months".

That statement needs a lot more clarification. Its not about being a "competent" broker, a half-way "competent" broker, lender and underwriter would worry about how someone with recent problems paying their bills is going to make the house payments on time. If you have 5% ready to put down on a new home, the first step is to use it to pay the bills you already have. Not trying to be mean or anything, but its what any "competent" financial advisor or lender will ask to see.
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Old 07-25-2008, 07:58 AM
 
Location: Raleigh, NC
9,059 posts, read 12,927,765 times
Reputation: 1401
Quote:
Originally Posted by TimtheGuy View Post
So, it's the brokers fault that you and your husband have credit issues?

Recent late payments are going to be a real problem no matter who your broker is.
Borrowing from a quote:

"D'oh. This is everyone else's fault but mine"

- Homer Simpson
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Old 07-30-2008, 01:25 AM
 
Location: Denver
3,373 posts, read 9,150,561 times
Reputation: 3427
USAA is allowing it ...
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Old 08-06-2008, 04:05 PM
 
Location: Katy, TX
70 posts, read 339,036 times
Reputation: 29
Default 5% down dead?

Not true....

We're getting ready to close on a new home with 7% down. Because we're going VA, we could have gone with 0% down.
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Old 08-06-2008, 04:07 PM
 
Location: Stanwood, Washington
658 posts, read 824,922 times
Reputation: 172
Quote:
Originally Posted by intelligent_discussion View Post
I was watching CNN and they had a man on who said that to get a mortgage for a home you need at least 20% down regardless of your credit rating FICO score. The Reporter did not challenge him on this statement. I can not believe that this is true. Is the 5% and 10% down mortgage gone. How many first time homeowners can afford a 20% down payment?
With great credit you can get any loan you want. Gone are the times when people spending half of their income on housing can get a loan. The purpose of the 80/20 loan was to avoid mortgage interest.
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