Any mortgages without a down payment?
Hey WSO, are there any methods by which I could get a mortgage without a down payment? Also, what are the documents need for such mortgages? Is there a need to produce an income certificate (or something similar)?
This isn't 2006-2007. You need a downpayment; if you don't have it then you shouldn't be buying a house
Wrong - There are many lenders particularly in the Bay Area doing 80/20 loans and others are doing full on 100% LTV financing: See here: https://www.sanfranciscofcu.com/poppyloan
It's amazing how much financial illiteracy you will see on a finance forum. Like yeah let me lever up infinity percent, no risk there.
You're trying to get a mortgage in the US?
You'll need to produce pretty comprehensive documentation including paystubs (past 1-2 months), W-2s, tax returns, ~2+ months of statements on all accounts (bank, brokerage, 401K etc) and information on any other assets.
Many mortgage companies are going to want to see 2 years worth of employment history.
It should go without saying that you will definitely need a down payment. Depending on your credit score they may pressure you to put up to 25% down.
Thank you guys!! Can I get a mortgage with security?
You can do a low down payment with your first home, but you'll have to pay mortgage insurance in addition to your mortgage. I'd rent for a while until you have a solid stash.
first of all, prices are a bit high. in my area and other cities around me, many starter homes are selling for 10-30% above ask, so it's not the best time to buy. if you want a fixer, that's a different story, but if you can't afford a down payment, I doubt you can afford a contractor (no offense, just saying).
one of the biggest financial mistakes you can make is buying a house too early. yes, a home is a good (not great) purchase, yes you get some tax benefits, and yes renting can be a pain in the ass especially if you have roommates which always change and therefore you're always moving, but tough it out.
reason being, you don't build up meaningful equity in your home for a while, it's just the way mortgages amortize. if you don't plan on staying in your home 10+ years, don't buy. at this point in your career (assuming you're young), you can't bank on that, so is it worth the risk? if you do decide to buy then get relocated 3y out, are you going to try to sell your house? you'll take a loss for sure (unless your market has improved dramatically). you could always rent it, but do you really want to remotely manage a property? if you pay a management company, their fees will eat into any profit you have, so while you get the mortgage paid for, still a headache.
also, incidental expenses are a bitch. any idea what plumbing & electrical repairs cost? heaven forbid your fixer upper isn't up to code and what that might entail. what if your washer & dryer breaks? what if some squirrels fall into your fireplace and die because you didn't have a cap on your chimney? what about aesthetic stuff? sure, you can live in a shithole and not redo the floors, counters, cabinets, etc., but don't you want to be happy where you live?
I think homeownership is a great thing, but I don't understand the hurry. use your formative years to live in a place where you have minimal liability. you have a problem, call the landlord. something breaks, call the landlord. you want to move? no need to sell & stage your house, just give them 60 days notice and gtfo.
Have you ever considered writing a basic financial advice book? There was one geared towards women that I read in high school called On My Own Two Feet that was very good. I consider myself fairly knowledgeable about finances, but always learn something from your posts.
I have thought about it, it's one of my goals in life. I expect I won't write it until I have children in/out of college, which is a ways away. I want to be able to cover the gauntlet from high school through retirement and base it on personal experience as well as client experience.
this aged well
well, looks like I'll be eating my words for lunch today!
I will say this, my wife and I bought 3y ago and it was much easier to find a good deal. 2017 was crazy but yeah, looking at my comments from 5y ago, I had a little too much hubris. structural factors have kinda made the SE a perennial grower price wise, the only advantage to waiting was the lack of competition
OP, if you do end up getting a mortgage, please let me know who the lender is so I can short it
lmao!
If you have a family member in the military you are eligible to join Navy Federal Credit Union. They offer 100% financed mortgages and jumbo mortgages.
Yeah I have Navy Federal - they are good.
ditto, I would have gone with them if I could. For other service member families, USAA also has really great auto rates, Navy Federal probably does too. I ended up going with PenFed which offered a great rate for a 15yr but was fucking annoying to deal with, even for someone with previous homebuying experience.
Thank You all. I heard that it is hard to get a mortgage without any down payment. I just saw an article from the Alberta mortgage portal, about bi-weekly plans for low-interest payment. Had anyone tried such plans for reducing interest?
worry less about interest rates when they're globally at record lows. worry more about saving up for a big down payment so you don't have to pay PMI
Another possible option are FHA mortgages. They require a down payment but they can be extremely small, relative to the more traditional 20% down payment. I believe the minimum is something like 3.5%.
Yes, you said right about this. An FHA loan can be used for several housing types: a single-family house, a multifamily house with up to four units, a condominium, or a manufactured home that’s on a permanent foundation. Another perk is that you can use an FHA loan to buy a multifamily (two-to-four unit house) with a 3.5% down payment and qualify with rent on the other parts as long as you live in the house for a year.
there are programs for US military veterans with ZERO down payments (these differ by locale, so check your city/state for details)....but you still have to pay PMI (private mortgage insurance)....which makes the cost of ownership much more expensive than renting. If you buy a multi-family housing unit (for example, a multi-family house with 3-4 living units) where you can rent out enough units to make living in the property "free", then this is a great deal.
For example, this is the case in Stamford CT right now (45min commute to Manhattan)...the multi-family housing units aren't the nicest places to live...but they are decent...and you can net/net live for free, while having tenants pay off your mortgage.
I've purchased a bunch of properties over the past 25 years, and it wasn't until this last one that a VA loan finally made sense. I looked into it every single time I bought (starting in 1991) and conventional lenders were always more competitive. This time around (early 2015) the VA was finally the best deal out there, so I bought with no money down (or very little down,
You DON'T have to pay private mortgage insurance with a VA backed loan. No down payment required but no PMI. That's the reason it's so good
Me and my wife put about 16% down. We both had great credit, zero debt, good job history, and it was still the biggest pain in the ass I've ever had to deal with. Almost didn't go through because my wife had changed from teaching into the medical field 2 years ago. If you have good credit and no debt you might be able to get a non-conventional but your payments will SUCK.
If your single or unmarried, I wouldn't waste your time. My advice is save up as much as you can, have 3 years steady employment (in the same field), attack any debt you have (if any), wait for the right opportunity, and go conventional. Home ownership is great but it's stressful.
FHA loans and USDA loans are two loan types for people who do not have funds available for the traditional down payment amount. However, there are some extra hoops to jump through and costs that come along with them.
http://www.consumerfinance.gov/owning-a-home/loan-options/FHA-loans/
http://www.rd.usda.gov/programs-services/single-family-housing-guarante…
Sofi - 10% down up to $2m.
Well, there is the doctor's mortgage that requires something in the zip code of 5% down payment. But then again you have to be a resident or attending at a hospital, not some finance monkey.
What is that program? I have a med school friend that could have taken advantage of that.
I believe the lowest down mortgages available right now are USDA mortgages but those are mostly for rural homebuyers. Otherwise it's FHA really.
Yeah, it's called a VA Backed Veterans Home Loan. No down payment, no private mortgage insurance, capped out interest rates. How to get it? Gotta serve in the US military, of course
https://www.va.gov/housing-assistance/home-loans/
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