First time home buyer, no money down, need financing

I’m looking to purchase my first home. I can afford an 1000/month mortgage, I have a credit score between 700-730, never been late or missed a payment and have about $20,000(or will have this once I graduate in a year) in student loan debt. I’m 25 yrs old, and I make about $39k/yr.

I’m thinking that I could afford a mortgage between $160k-200k - based off the numbers that i’ve played with, but not positive. The problem is, I have no money to put down towards the house, and my credit is still somewhat new. Average age of my accounts is 2 years, with my oldest account being 6 years.

I know this type of financing is available, but I just have to find it. My question is, what type of information should I start looking into? Is there anything I should avoid?

Thank you in advance.



A home with a payment of $1k per month is probable a home purchase of $125k to $140k PITI. (Less if your required to pay PMI?)

Depending on what state your in there may still be owner occupied 100% finance programs?
You may still need to borrow (Mom & Dad) to meet some requirements as closing cost’s may not be able to be financed to the new loan.

Good luck,


Thanks for the reply. I live in Southern California and do not enjoy my current living situation. The condos that I am interested in look to be in the range of 170k-190k. These are the lowest in my area.

I know this may be a struggle for me at the beginning, but once I finish school in a year, and start my career, my income will increase. Is there any way that I would be able to structure a loan to avoid a down payment and paying PMI?

Any lenders you guys recommend me looking into?


Right now see if you can find a lease option to get into, the cost out of pocket could be reasonable and you can refinance into it in 2 or 3 years!


I occasionally see a listing that says it is eligible for Fannie Mae home path mortgage. I haven’t looked into it, but from a superficial glance it looks like it is for owner occupied with 3% down. They do appear to all be foreclosures that offer it.

You’d better refigure on that $170,000 condo. It’ll have a hefty monthly association fee, pus your insurance and taxes, and possibly special assessments. With all the associate expenses, you aren’t going to buy a $170,000 condo for $1000 a month unless you make a very substantial down payment.

Also, unless the condo association does not allow rentals, you might find that living in a condo isn’t much different than living in an apartment. You’ll still have tenants on all sides of you.

Unfortunately due to were you live it will be very difficult for you to find a home in your price range. I would keep saving and wait for your income to increase. buying a house in SoCal on your salary will make you house poor immediately.