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Old 03-13-2009, 01:06 PM
 
1,872 posts, read 3,747,898 times
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We've had a house on the market since July. We have a guy who is very interested in making an offer but doesn't know how he's going to come up with the down payment. He can get $3000 of the $5000 from his 401K, but has no one in his family to "gift" him the rest. He realizes he can't borrow the down and he does not qualify for any help with down payment through lenders. We as the sellers are paying closing costs. Does anyone out there have any ideas on how this guy (or anyone) can come up with a down payment other than the typical "save some each paycheck until you have it" way? Thanks for any help you may give.
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Old 03-13-2009, 01:56 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,366,080 times
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Unfortunately there is really no other way other than save up until you have it or have a family member gift it to you. If he doesn't have the down payment he shouldn't even be shopping.

Then again, perhaps if your property qualifies he could look into an USDA mortgage? There are certain guidelines he would have to meet as well, and I've heard that USDA is out of money and not funding (I have not confirmed it but I live in an area where USDA is useless so I don't have much knowledge on it) but if everyone and everything qualifies they do offer 100% financing (I believe it is actually 102% as they finance some closing costs but again not sure).
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Old 03-13-2009, 02:07 PM
 
Location: NC
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Red face Not the greatest IDEA But!?

YOu can get title loans on a car but I do not suggest taking the payments out long term. If you do you will need to use someone like American General Finance and they will generally make a 2-10K loan. He has to understand they will lay it to you in interest and it would be better to pay it back fast.
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Old 03-13-2009, 02:33 PM
 
163 posts, read 624,910 times
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People can still get personal loans.
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Old 03-13-2009, 02:36 PM
 
Location: Sacramento
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The way lenders are today I would be shocked if he qualifies for a mortgage. They always ask if any part of the down payment is borrowed. I know it is hard to want to sell a house and not have a buyer. But you know what is worse to have nobody looking at your house because it is under contract and then sale falls through. It is a different time now.
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Old 03-13-2009, 10:39 PM
 
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The guy is already qualified for the loan. He did not qualify for USDA. He would need the 3 1/2% required for FHA. The hard part for him is that although he qualifies, his income is not steady as he has a job that pays commissions. He has proven that over the past few years he has made enough to qualify (working for the same company) but right now things are tougher until "spring" actually hits in Montana! He told me in an email today that he has about half of what he needs for the down now. I don't blame him for being careful and not making an offer until he's sure he has the down. The house payment won't be more than his rent, so I do think he is a good candidate to buy a house rather than renting. It's just that a lot of people nowdays don't have much, if any, money saved, sadly.
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Old 03-13-2009, 11:04 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,366,080 times
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With all due respect, if he does not have the down payment he has not qualified for anything and in all honesty it makes me sick that there are still LO's in the business that will "qualify" someone that obviously does not truly qualify for a loan. No verified funds for the down payment (sourced and seasoned unless gifted and even then they are sourced), no loan. Simple as that. I apologize if my words seem harsh but the fact of the matter is that due to current market conditions, creative down payment and financing options are gone.
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Old 03-15-2009, 02:07 PM
 
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Has the buyer asked his employer for a loan? My employer will loan up to a certain amount and deduct payments from paychecks until it's paid off.
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Old 03-15-2009, 03:59 PM
 
163 posts, read 624,910 times
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Some people can qualify for 100% finanacing, although I hear those days are over unless you qualify for a VA loan, I know here in Texas depending on where you buy, the counties assist with down payments and I have a friend in Florida who just bought a home and the county there paid 100% of her down payment, now it was not 20% but it was enough to get her a house, depending on your income.
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Old 03-15-2009, 10:37 PM
 
1,872 posts, read 3,747,898 times
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Quote:
Originally Posted by cleasach View Post
Has the buyer asked his employer for a loan? My employer will loan up to a certain amount and deduct payments from paychecks until it's paid off.
I don't think that would be possible, but I don't know, being he works for a large company. He works for Bresnan Communications, a large cable tv/internet/telephone provider. It's not like he works for a mom & pop type company. I'll mention it to him, though. Thanks!
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