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Have you bought a house with NO money down and had an affordable mortgage rate?

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CCMami

Asked by CCMami at 11:18 PM on Oct. 27, 2010 in Money & Work

Level 8 (252 Credits)
Answers (10)
  • Yes I have done that twice in my life. The first time, I went through the Farmer's Home Administration to purchase a home. There was no money down at that time and payments were next to nothing. I so wish I still had that house! The second time, I purchased a home and went through a mortgage company that helped me find what I could afford. I think I may have put $500.00 down at that time. With the times the way they are, there are opportunities out there! Be sure to check into the ones where you can assume someone's mortgage or where the seller pays some closing costs.
    m-avi

    Answer by m-avi at 11:22 PM on Oct. 27, 2010

  • Yep...Hubby and I bought our first house (and planning for it to be only house) using a Rural Development Program. It allowed for 100% financing and no private mortgage insurance and normal interest rates. We got VERY lucky!

    I would think if you have a good real estate agent and mortgage person that you're working with, they should/would inform you about any local programs and things to look into.
    dlandrum

    Answer by dlandrum at 11:46 PM on Oct. 27, 2010

  • Nope. You'd probably have to have a stellar reliable income and a small mortgage. I'm not saying it's impossible, but banks aren't giving out loans like they used to.
    Erica_Smerica

    Answer by Erica_Smerica at 3:44 AM on Oct. 28, 2010

  • It's really tough to do these days. We just bought a house and have zero credit scores (we pay cash for everything and have had no credit cards for 12 years) - that was tough too, but was possible. We did go through FHA and only had to put 3.5% down, although we did put more down than that. When we added to what we could put down, we got a better rate also. The rates are so incredibly low right now, that almost any rate you can get is so much better than they have been in 20 years !! There are also some military programs available that have zero down payments as well. Get yourself a good real estate agent and they can steer you in the right direction. Internet research can get you a ton of information as well - GL !!!
    JustMyOpinion22

    Answer by JustMyOpinion22 at 5:31 AM on Oct. 28, 2010

  • Not with NO money down, but 11 years ago when we bought our house it was 3% down and 6% interest. We had to have exceptionally good credit to get that. It's going to be tough these days though to get a loan with anything less than 20% now. It could happen, but the banks are tightening up the reins big time. What you need to do before you even get your hopes up is talk to your bank so that you know what to expect or they can give you a goal to work towards.
    slw123

    Answer by slw123 at 10:36 AM on Oct. 28, 2010

  • I considered doing this while I was single, but didn't because i would have had to have paid mortgage insurance, would have had a high interest rate and the only house I could have afforded was in the slums. Needless to say, I continued to rent.
    HotMama330

    Answer by HotMama330 at 11:35 AM on Oct. 28, 2010

  • Yes. We went through Quicken Loan. Our rate is 6%.
    August07Mom

    Answer by August07Mom at 2:28 PM on Oct. 28, 2010

  • We have an affordable mortgage, though we put down about 40%
    rkoloms

    Answer by rkoloms at 5:44 PM on Oct. 28, 2010

  • i have a coworker that put down 3% and he had HORRIBLE credit. That was right before the housing credit ended this year. Everyone is telling us, its very possible. Our credit is pretty good and we have good jobs. We'll put some money down but not 20%. I think we just need to go in and speak with a professional.
    CCMami

    Comment by CCMami (original poster) at 10:49 AM on Oct. 29, 2010

  • We did an 80/15/5. We have two mortgages and only put 5% down. It worked well for us.
    TALuke

    Answer by TALuke at 3:24 PM on Oct. 29, 2010

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