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First time home buyers really don't have to put anythig down?

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SaraD1989

Asked by SaraD1989 at 7:47 PM on Apr. 3, 2013 in Home & Garden

Level 18 (5,457 Credits)
Answers (12)
  • IDK. It's not the smartest way to purchase a house, but whatever floats your boat.

    This administration has requested that the banks ease up on their qualification requirements. I mean, what could possibly go wrong?
    QuinnMae

    Answer by QuinnMae at 8:10 PM on Apr. 3, 2013

  • Most first time home buyers programs are 3-5% down instead of the traditional 20% down. Then there are other programs in place that work in conjuction with FHA loans to help get the down payment and/or cover closing costs.


    http://portal.hud.gov/hudportal/HUD

    desert_diva

    Answer by desert_diva at 8:31 PM on Apr. 3, 2013

  • I also know that there used to be some banks that would give two loans, one was the conventional and they would do 80% of the purchase price of the home on that to avoid PMI. The other 20% they would do a home improvement loan. I doubt many (if any) of the banks out there are still doing this as it is very risky, as well as the interest rate on the smaller loan is often adjustable which can get people into a lot of hot water.
    QuinnMae

    Answer by QuinnMae at 8:37 PM on Apr. 3, 2013

  • i bought a home. i put 2000 down. i never heard of you not putting anything down. i know a bank wants you to. if you know the person personally then they might work with out
    Anonymous

    Answer by Anonymous at 8:49 PM on Apr. 3, 2013

  • Yes they do. Now people who can use VA. Don't have to. If they qualify. People who can use VA loans are Active duty Military and Retired Military. Civilians have to put some money down.

    louise2

    Answer by louise2 at 8:51 PM on Apr. 3, 2013

  • I don't think they're doing 0 down except for VA anymore, but check with your bank. To get the best loan terms, you do have to have a great credit score.
    ohwrite

    Answer by ohwrite at 9:39 PM on Apr. 3, 2013

  • We didn't have anything to put down but didn't go a totally traditional mortgage route, plus it was almost 11 years ago and only a $45,000 house.
    idareyou

    Answer by idareyou at 10:00 PM on Apr. 3, 2013

  • It would make me nervous. Homes are expensive once you get I to them.
    RyansMom001

    Answer by RyansMom001 at 10:10 PM on Apr. 3, 2013

  • never heard of this, not here anyways...
    sarasmommy777

    Answer by sarasmommy777 at 10:53 PM on Apr. 3, 2013

  • This was really popular here during the housing boom. Now we're swimming in foreclosures. When we were 20 and bought our first home, we put down only 3% (and the house was a super cheap fixer, so that was only $2850) and the city put 2% on our loan as a buying incentive. It's generally not a great idea to get into a house with such a small amount, but it's a good way for responsible buyers to get a foot in to become a home owner. We remodeled the house, had it re-appraised, and dropped our PMI less than a year after buying that house, so it worked out well for us.
    JulieJacobKyle

    Answer by JulieJacobKyle at 11:10 PM on Apr. 3, 2013

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