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if you are a homeowner, and you didnt have much money to buy the house in the first place....

mind sharing your experience? SO and I have very little saved up, which I guess would go towards the down payment, but we arent sure what to do. Take out a loan from the bank for the down payment and closing cost? Can we do that? What did you do? SO and I know some people who had very little money but were able to buy a decent home.

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Owl_Feather

Asked by Owl_Feather at 10:41 AM on Jul. 14, 2010 in Home & Garden

Level 22 (13,272 Credits)
Answers (12)
  • Find a good Lender and see what you can qualify for before you take out another loan, that could jeopardize your chances of even getting a loan..
    ShelbysHope

    Answer by ShelbysHope at 10:42 AM on Jul. 14, 2010

  • Honestly, I would wait two or three years. Put your tax return aside completely for a couple of years.

    That having been said, I believe you can apply for some government help with a down payment. Google that.
    lovinangels

    Answer by lovinangels at 10:43 AM on Jul. 14, 2010

  • thanks loving angels! yes I dont thnk we are exactly going to move in right away, definately save up and when tax time does come around, hopefully the house is still for sale. It's been on the market for a long time. But watch, with our luck it'll be sold by the time we have more money saved up
    Owl_Feather

    Comment by Owl_Feather (original poster) at 10:45 AM on Jul. 14, 2010

  • Only thing saved was $1,800... wrote in closing cost... don't spend another dollar towards rent! There are ways to buy, good luck!
    MDT09

    Answer by MDT09 at 10:49 AM on Jul. 14, 2010

  • We about our home with $500 cash that was it. Well we made the offer we put $1,000 on the table. We were told by our lender to have another $1,000 at closing. So that would have been $2,000 cash. However at closing we ended up RECEIVING a check for $500. Thus, we really only bought our house with $500 cash! We qualified for a ZERO money down loan. The loan amount (mortgage) was a few thousands MORE then what we bought the house for. The extra money on the loan, help payed for the closing cost and starting the escrow account.
    SAHMinIL2

    Answer by SAHMinIL2 at 10:52 AM on Jul. 14, 2010

  • UGH sometimes I swear I type something different then posted. We bought (not about) our home with $500 cash that was it! LOL
    SAHMinIL2

    Answer by SAHMinIL2 at 10:53 AM on Jul. 14, 2010

  • You need to keep saving! It is situations like this that lead to people losing their homes. You need to have 6 months of living expenses saved in case of illness/injury/job loss. After you have this saved then start saving for your home. The more you put down the more equity you will have going in, the lower your montly payment will be, the less interest you will pay AND the more security you will have if a disaster/crisis befalls your family. You should also plan on having an extra thousand or two for those little things that pop up as soon as you buy a home...trust me little things WILL pop up.

    Don't risk your family's future by buying a home too soon, with not enough down and too much mortgage. You also need to make sure that whatever you spend on the home you also have enough to save money each month. Without savings you won't be able to make the repairs on the home as they come along.
    yourspecialkid

    Answer by yourspecialkid at 11:00 AM on Jul. 14, 2010

  • for times when the bank asks for loads of money for closing costs...like I just filled out an online loan at one of my banks and they requested $12,000 for closing costs...WTF...thats alot lol what to do in this situation if I hit the "apply" button? If we dont have $12,000 what do we do?
    Owl_Feather

    Comment by Owl_Feather (original poster) at 11:15 AM on Jul. 14, 2010

  • When we bought our first house, we were only 20 years old and pretty broke. We looked in to first time buyer programs through the city where we wanted to live. The city had programs where they paid part of the down payment, and if you didn't sell your house within the first five years, the money was yours to keep. If you did move, you would have to pay back some of it, depending on how long you owned the house. We ended up getting a few thousand dollars from the city toward our down payment, and living in the house for six years. It was a huge help.
    JulieJacobKyle

    Answer by JulieJacobKyle at 11:44 AM on Jul. 14, 2010

  • There are lots of special programs out there, research them all before jumping in. We got a special loan that was for homes out of the city limits- where we were limited by where we could buy, but we got more from the loan by doing so. Also, you can ask to roll all the additional costs into the final sell cost and it goes right into the loan itself, less for you to come up with.
    HistoryMamaX3

    Answer by HistoryMamaX3 at 1:08 PM on Jul. 14, 2010

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