I hope I am not out of line for posting this. But I am getting desperate…
My husband and I are approved for a home loan for 95%. It is amazing that we were approved for that, because several bad situations caused our credit to suffer. We don’t have the funds for the 5% or for closing cost. Is there any possibly way for us to own a home?? Any suggestions gladly appreciated??
:-[
There are a few options out there. Depending on your middle credit score there is a chance that the broker you are working with hasn’t contacted all the lenders he can to get a full 100% financing approval. I would say the odds of that are slim because we loan officers usually know VERY WELL who offers 100% financing at low credit scores. There still is a slight chance.
Option two would be if you could convince the seller of the home to carry a second mortgage for 5 percent. They are very tricky, some lenders don’t allow them, sellers hate them, but if they are motivated to sell, it is an option.
Option three would be to wait, work on your credit, and when it gets high enough you can then re-enter the purchase market
Option four would be to find someone who will give you the money needed for a down payment and for closing costs.
These are the 4 most common ways to make this happen. None of them are very easy or fun though. Without seeing your credit report or knowing everything about your situation, I obviously can’t give you any specific instructions or answers, but these should be very good general answers.
You can also try with HUD/FHA and with the VA (if you have any military experience)…most states also have low income programs, etc. especially if you’re a first time home buyer.
Keith
How much is the 5 %?
What ever happen to those gift programs. Wish I could remember them where the seller gave 5% by raising the selling price the 5%. I think one was Heart to Heart or something like that. I use to have 4 or 5 of them bookmarked… But they allowed sellers to actually give the 5% thru the sale price…I know not all loan programs accepted them and it was for 1st home buyers…it was yrs ago i remember them…
also check this company out for downpayment assistance…
http://buypropertytoday.net
Thank you everyone for all of the great information…
The 5% would be about 8 grand…
JSB…i was actually talking to my broker today and a deal i want and we just remember something which can help you.
Ask your broker is he can do a loan where you do not have to document the 5% downpayment and see if you can add 5% to sale price and have seller pay it at closing. Of course they will need to come with the check, it will not come from the proceeds at close, it physically has to be paid… Or see about a gift from someone, and it will be documents with a letter as a gift. Just not all loan products will allow this.
Thank you…I will definately look into that…
You would have to go no doc to not have to document the 5% down. You may not have to season it, but you would still have to show the availability of the funds. I saw that you have posted this on another investor web site as well and received the same answers. Do you know your credit scores? If so please post them because that will help the lenders that read these postings give you more of idea of how to solve your problem.