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USDA loans if you are in a rural area.
Find a good mortgage broker to sit down with and run numbers with you and see what your options are for your area and income level.
USDA loans if you are in a rural area.
Find a good mortgage broker to sit down with and run numbers with you and see what your options are for your area and income level.
Right.
Scorp, talk to a good lender and get the scoop on USDA.
They will even allow up to 6% Seller contribution.
USDA is targeted at rural areas, and I imagine you are looking in town, but get the final word from a lender on the specific property.
Underwriting will be to FHA standards, meaning all necessary inspection repairs done for closing.
Ask a banker about Community Reinvestment Act programs. There has been some 100% funding there, but with restrictions on earnings, and again the house has to convey with no needed significant inspection repairs.
Gulp. And...closing costs are going to be tough as well...
because I pay so much in rent I can't save, grr
I have my eye on a completely affordable small house, great investment, totally within my means...have steady job, pays fairly well - only credit blemish is that I carry quite a bit of debt right now. But otherwise everything is getting paid on time and has been.
But savings? Forget it!
There's nobody in my life to give a gift down payment...am I completely out of luck in this economy? NC offers a great loan for first time homebuyers, but my income is above the limit for a down payment assistance loan.
This down payment issue is the main thing keeping me a renter.
Scorp, what city are you looking to buy in? Also, how much money do you make and how big is your family? I assume you were talking about NC Bond that you make too much for the $7000? There are many other low or no down payment options depending on what part of NC you are in. There are city programs, seller funded down payment assistance, VA, and USDA still available....
Debt to income ratio is pretty important these days, so depending on the amount of debt you have that might hurt you. On the other hand, payment shock is also a great compensating factor (having a lower mortgage payment than your rent looks great).
You probably won't like this answer, but if you don't have any savings, it's probably better to wait until you have some money saved up... not only for a downpayment, but for all of those unexpected house expenses. For ex: what happens if you need to replace your stove or refrigerator, or if you ac/heat goes out, etc. You don't want to dig yourself deeper into a hole and have to borrow money to cover these expenses. But... if you really like the house, you should ask them to do a rent to own option, where each month, some of your rent goes towards the downpayment of the home. With this option, make sure you have in writing that you can see the monthly mortgage payment statements, to make sure that they're paying the mortgage each month.
Some professions are offered 100% financing. I know at least one major national bank that offers 100% financing to attorneys. My mortgage broker told me doctors were eligible for 100% financing from at least one of his investors. So yes, there are still some programs out there. Not sure those particular ones are helpful to you, but there you have it anyway.
Gulp. And...closing costs are going to be tough as well...
because I pay so much in rent I can't save, grr
I have my eye on a completely affordable small house, great investment, totally within my means...have steady job, pays fairly well - only credit blemish is that I carry quite a bit of debt right now. But otherwise everything is getting paid on time and has been.
But savings? Forget it!
There's nobody in my life to give a gift down payment...am I completely out of luck in this economy? NC offers a great loan for first time homebuyers, but my income is above the limit for a down payment assistance loan.
This down payment issue is the main thing keeping me a renter.
Check with your city. I qualified for a low/moderate income FTHB program that has 100% financing and 3.3% fixed-rate interest. It is offered by the city, and is subsidized by some federal money. I had planned on doing that 3.5%-down FHA loan, and saving for a while, until I stumbled upon this option. My understanding is that many municipalities offer something like it.
It has all sorts of crazy restrictions, but if you fit the criteria of who they want, it's a heck of a deal.
Or, I think the USDA has 100% financing loans. They're supposed to be rural, but I see plenty of suspiciously urban areas that qualify. Where I come from they don't build townhomes in rural areas... weird North Carolinians..
If none of the suggestions above works. You can always move out of your current apartment and move into a less expensive one. Put the payment difference into savings.
Obviously if you can qualify for VA, or other special financing programs that are out there, that can be the way to go. Just make sure you will not be in your current situation after you purchase the house...ie paying so much for mortgage, taxes, insurance, and maintenance that you are still unable to save anything. Too much of that contributed to the current situation, you should ALWAYS have the ability to save.
Thanks everyone! Actually Greg that's what I'm probably going to do (unless I can find a cheap house rental w/fenced yard for the dog, but that's another forum). I drove by the house today and while the house and the neighborhood are fabulous, the exact location (next to substation in the back, creepy scary run down apartment building on the left) is not what I want. Explains the price. I'm still going to investigate USDA and the rest, I think my best bet is to cut down on expenses for the next 6 mos or so and attempt to save...
Mike this house is in Durham right near Duke East Campus - almost perfect!
Thanks everyone! Actually Greg that's what I'm probably going to do (unless I can find a cheap house rental w/fenced yard for the dog, but that's another forum). I drove by the house today and while the house and the neighborhood are fabulous, the exact location (next to substation in the back, creepy scary run down apartment building on the left) is not what I want. Explains the price. I'm still going to investigate USDA and the rest, I think my best bet is to cut down on expenses for the next 6 mos or so and attempt to save...
Mike this house is in Durham right near Duke East Campus - almost perfect!
Scorp,
Sure doesn't sound like a USDA opportunity.
But... it is free to ask.
Try the CRA route with a local bank.
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