Buying a house with no savings/down payment

amother

Purple

Tue, Feb 27 2018, 8:16 pm

Looking for any information on buying a house in NY without a down payment of your own.. Any down payment assistance programs or anyone who used FHA loans? Any information and leads helpful. TIA!

amother

Plum

Tue, Feb 27 2018, 8:43 pm

You'll be able to pay a $800,000 mortgage each month? Mortgage payments here are hard even after you put down 35% cash down payment.

amother

Taupe

Tue, Feb 27 2018, 8:47 pm

personally I wouldn't do. I wouldn't feel comfortable owning a house without savings in case of an emergency. What happens if something break right after you buy the house?

amother

Plum

Tue, Feb 27 2018, 8:52 pm

Maryann wrote:

Following I never knew you could get on a program and buy a house without a down payment

If you're a first time home buyer making below a certain income, but make enough money for a bank to feel comfortable that you can make the mortgage payments, you can get help towards the down payment (or really toward to closing costs since closing itself is more that $25k (could be $40k for a condo) additional on top of purchase price). Most people who fall in that income level don't have the savings for the down payment, and most who have the savings, make too much to qualify for the program. So very hard to get in.
http://www1.nyc.gov/site/hpd/o......page
Nobody gives a loan without at least a certain percentage down, a certain reported income, and a certain amount in the bank as back up.

amother

Saddlebrown

Tue, Feb 27 2018, 9:14 pm

I'd caution against this even if it's possible... we bought last year with a down payment and savings, hired a good inspector, everything seemed in good shape, and just had a unexpected repair that cost thousands of dollars. What will you do if this happens?

amother

Firebrick

Wed, Feb 28 2018, 7:43 am

I’ve posted about this in other threads. Op, this is possible if you look outside of NY. I am IYH about to close on a house in Baltimore. 4 bedrooms, under 200k, closing costs were about 10k but the seller is contributing 3% at closing, my bank awarded me a $1,000 closing cost grant, and when all is said and done, I only have to pay about $6,000 at the closing table which is part of the total payment, not on top of it like the other poster said. My downpayment is only 3% which is covered with the closing costs. I have no PMI payment.

I have friends who bought in NY, by the way, and their downpayment and closing costs were rolled into their mortagage. There are options that you may not know about because they are not common. But they exist. Look outside your box.

amother

Purple

Sat, Mar 03 2018, 10:14 pm

Thank you regarding Baltimore! I heard prices were going up there but can you be more specific about the area in Baltimore? Wondering if you know about any of the programs you were referring to in NY.

Rubber Ducky

Sun, Mar 04 2018, 12:28 am

Chai is an excellent resource for those looking for a home in Baltimore: https://www.chaibaltimore.org/.....loans

Chai is having their annual Chai Housing Fest today (March 4, 2018) and also runs monthly homebuyer workshops. Link: https://www.chaibaltimore.org/chai-events

westchestermom

Sun, Mar 04 2018, 4:33 am

I don't think OP was saying she had no savings - there are many down payment assistance programs for FHA loans for first-time homebuyers that will pay your down payment for you, so you can keep your savings for an emergency or use them in addition to the down payment assistance. The problem is that they vary greatly by area, so you have to research the ones available in the particular state and sometimes county you are planning to move to. It's true that there are more options for rural areas, but I've done research because I want to buy a home and we would qualify for programs that give up to $15,000 towards a down payment.

amother

Firebrick

Sun, Mar 04 2018, 5:56 am

amother wrote:

I’m sorry, I dont know about programs in NY.
In Baltimore, I am talking about Baltimore City, where most of the houses are still under $250,000. In the county, in the frum area, they are bigger, mostly newer, and can cost between 300k - 600k (for a brand new massive house). The house that Im about to close on is a semi detatched, 40 years old, but was just completely renovated so its all new everything.

amother

Wheat

Sun, Mar 04 2018, 7:19 am

We took an fha loan on our house. We paid 445k for a two family house in far rockaway close to 3 years ago. The house is now worth 650-675k as the area turned over.
Our down payment including closing fees was around 26k. We have a high pmi but with the tenants income we still pay less than rent.
A lot of things come up when u are a landlord and u have to repair them/ take care of it. We had roaches, mice, roof leak, sewage backup, new hot water tank new washer/dryer and so on. I would say we put into the house around 50k by now. So it’s really not if u can afford to buy a house it’s in u can “afford” a house.

amother

Purple

Sun, Aug 18 2019, 8:29 am

Bumping this up. Has anyone done this successfully? What are first steps we need to take in buying a home? Thanks.

watergirl

Sun, Aug 18 2019, 8:59 am

amother [ Purple ] wrote:

Bumping this up. Has anyone done this successfully? What are first steps we need to take in buying a home? Thanks.

Yes. Look through my posts on this topic. I got a Fannie Mae loan which only required 3% down and no PMI. Seller paid 3% at closing (the most this loan allows). Got a few small grants from my state and city.

lora

Sun, Aug 18 2019, 9:45 am

its definitely all about location. for example I know someone who just did this in Scranton PA, 4 bedrooms $200k approx. downpayment was close to 10K and her Credit Card provider gave that amount interest free when they set up the mortgage. there are amounts that you can do it with and amounts that its highly not recommended. many credit cards/ banks will give up to $18k interest free loan for 2 years when buying a house, that will give you room for about 10k down and closing plus you need to count $8k for moving expenses. the question is can you cover a loan while paying the mortgage.

amother

Lavender

Sun, Aug 18 2019, 1:42 pm

My question is are you doing this because you have no money in the bank for a down payment or are you doing this because you want to retain savings.

If you have no savings, buying a house might not be a prudent financial decision because there are always going to be unexpected costs in a home. What are you going to do if a pipe bursts - the roof leaks - an appliance needs replacement?

If you haven't been able to save enough for a down payment, realistically how are you going to repay a credit card or other loan plus a mortgage plus real estate taxes plus utilities plus maintenance.

amother

Bronze

Sun, Aug 18 2019, 2:45 pm

amother [ Lavender ] wrote:

This. A mortgage is a secured loan. If you don't have savings on hand when you buy thr place, you risk losing your house, or at least living in a place you can't afford to heat and keep in basic repair.