First time homebuyer help with down payment (short sale, foreclosure)

[indytoflgirl]

Hello, looking for advice, web-site or thread about buying home without down-payment. Daughter is single, making around $50K, excellent credit and is tired of paying rent, but she doesn't have a down payment.....wants to live in St Pete where she works.......any help? Federal or state programs? Is it even possible now with the memory of the housing market crash so fresh? Thanks in advance!

[spbbound]

Save up the down payment and then buy. Downsize the rental and save even more towards the down payment. Without 20% down, and using one of those no down gimmick mortgages, she's going to be trapped paying mortgage insurance and most likely any gain over paying rent is going to be lost anyway.

[druthb00]

Does she have a retirement fund she can pull it from? I, like the other poster, recommend saving the 20%, but pulling it from a 401k or Roth IRA (the better option of the 2 if I remember right) is another way to go.

[DUNNDFRNT]

Originally Posted by indytoflgirl

Hello, looking for advice, web-site or thread about buying home without down-payment. Daughter is single, making around $50K, excellent credit and is tired of paying rent, but she doesn't have a down payment.....wants to live in St Pete where she works.......any help? Federal or state programs? Is it even possible now with the memory of the housing market crash so fresh? Thanks in advance!

FHA you can do 3%, you would be stuck with PMI, if you find a motivated buyer they can pay a lot of the closing cost, so if you are looking at a 100k you only need to come up with 3k, you can probably do a cash advance on a cc with that, not that is necessarily a good idea, look at the hud website for programs, they would be property specific though.

[TampaKaren]

There are a lot of programs particularly for first time home buyers. She would need to attend a class but it's a good idea even if she doesn't qualify for assistance. A family member may also gift up to $5,000 without a major tax event. She really should try and save up some money to contribute as most want the future home owner to have a vested interest in the home buying process. The following has been an add on to our MLS for several years and just recently added a public access site. Start here --> Down Payment Resource | Matching People, Properties and Programs

[indytoflgirl]

Thanks so much for your replies...good ideas to think about!!!!

[wgfitz]

I have a question to tag on. This is probably a common sense question so forgive my ignorance on the subject as we're still renters. Do people typically save up the down payment or take it out as a loan from the bank? Also, is it required for a short sale or foreclosure as well?

[DUNNDFRNT]

Originally Posted by wgfitz

I have a question to tag on. This is probably a common sense question so forgive my ignorance on the subject as we're still renters. Do people typically save up the down payment or take it out as a loan from the bank? Also, is it required for a short sale or foreclosure as well?

You cant get a loan for your down payment, typically you have to show a bank statement to see where the money came from, a certain amount is allowed to be gifted but it requires a affidavit from the people giving it to you saying they dont expect to get repayment.

[spbbound]

Typically the lender will require your bank to give them your average balance over a period of time, and if the down payment could not possibly come from that, you'll need to document where it did come from. The mortgage I got a few months ago required an entire personal financial statement that showed all assets and liabilities so the bank could ensure their required ratios were met.

Short term or high interest lines of credit to come up with a down payment were just one of the many things that went wrong with the mortgage industry prior to the meltdown. Anyone who can't get the 20% through normal savings probably should not be purchasing a home.

[seain dublin]

Originally Posted by indytoflgirl

Hello, looking for advice, web-site or thread about buying home without down-payment. Daughter is single, making around $50K, excellent credit and is tired of paying rent, but she doesn't have a down payment.....wants to live in St Pete where she works.......any help? Federal or state programs? Is it even possible now with the memory of the housing market crash so fresh? Thanks in advance!

I think a better question is how come a single person who makes 50K a year(an above average salary in the area) doesn't have money for a down payment herself? She should easily have several thousand dollars in a savings account.