Buying a house with little to no down payment?

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amother

Sat, Jul 11 2020, 9:49 pm

We’re thinking about buying our first chime but we don’t have enough savings for a large down payment. I googled and saw (if we’re eligible) different types of loans, done with very little down payment. Any of you ever take a mortgage with very little down payment? Tell me anything I need to know because I’m still very new to this and need to do my research. We know we will have other expenses such as property taxes, insurance, utilities and house maintenance... I don’t want us to become house poor. But we also don’t want to keep on wasting money on rent and really want to settle somewhere and create our own home. Looking at cheaper house prices that range $250,000-$350,000 (most likely we can afford the lower range) we just can’t have a crazy monthly expenses. Please let me know if you’ve done this and how much you end up paying monthly. Thanks!!

watergirl

Sat, Jul 11 2020, 9:57 pm

I did. We got a special fannie mae loan product that is extremely uncommon and only offered in very few parts of the country (States). It is so unheard of, when I first posted about it, people told me I must be wrong because such a thing does not exist. No PMI either. We only had to put 3% down, which the seller paid. And my house cost just under 200k.

Last edited by watergirl on Sat, Jul 11 2020, 10:12 pm; edited 1 time in total

amother

Red

Sat, Jul 11 2020, 9:58 pm

I am in the mortgage business. You can get a loan with as little as 3% down payment. We do them all the time.

amother

Firebrick

Sat, Jul 11 2020, 10:06 pm

We did 10% down, standard mortgage we just had to pay PMI for a few years which was around $100 a month.
We were at the point that we could afford the mortgage and it seemed silly to rent for a couple more years to save up another 10% to avoid PMI.

proudmomma

Sat, Jul 11 2020, 11:49 pm

amother [ Red ] wrote:

I am in the mortgage business. You can get a loan with as little as 3% down payment. We do them all the time.

just curious , is this applicable anywhere in the US? Even in Brooklyn with skyrocketing prices?

amother

Brown

Sun, Jul 12 2020, 12:34 am

When you buy a house, you will inevitably have repair and maintenance issues. Please be sure to have some money saved up for after you buy.

amother

Gray

Sun, Jul 12 2020, 1:32 am

proudmomma wrote:

just curious , is this applicable anywhere in the US? Even in Brooklyn with skyrocketing prices?

Yes it's available anywhere in the USA, even in Brooklyn

mig100

Sun, Jul 12 2020, 2:42 am

amother [ Red ] wrote:

I am in the mortgage business. You can get a loan with as little as 3% down payment. We do them all the time.

How does this work? What is the downside? Are there any?

amother

Sun, Jul 12 2020, 7:04 am

If we are eligible for 3% down payment, what else did you have to pay on the first month besides the movers? (Assuming we move to a house that won’t need any repairs)?

watergirl

Sun, Jul 12 2020, 7:08 am

amother [ OP ] wrote:

If we are eligible for 3% down payment, what else did you have to pay on the first month besides the movers? (Assuming we move to a house that won’t need any repairs)?

Even before the first month, you have to lay out money. Inspection(s), earnest money ($1,000), and closing fees.

This is why my state requires first time homeowners to complete a class and 1:1 counseling before you will get a loan. There are too many things you may not know. OP, its a good idea to do some real research. Not just asking imamother for info. It varies state by state, country by country.

amother

Sun, Jul 12 2020, 7:26 am

Thanks, yes I have lots to learn

Bleemee

Sun, Jul 12 2020, 10:05 am

watergirl wrote:

Is it a class that anyone can access?

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