nothing down?
has anyone bought a house and put nothing down?
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nothing down?
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Re: nothing down?
no such thing. no sellers attorney will ever let you get away with going into contract without putting some kind of money down. usually its a minimum of $10k but even that amount makes some attorneys cringe.
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Re: nothing down?
I bought my house 2 1/2 years ago with no money down. I did an 80/20 loan (two loans- one at 80% of the value and the 2nd at the remaining 20%). Any money that you would put down for a down payment in such an instance would be credited to your closing costs that you owe at closing. I've worked in the mortgage industry for about 5 years and this is quite common as the value of houses has soared out of control in the last few years. FM me if you need any advice or have any additional questions.
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Re: nothing down?
Posted by lisa813
I bought my house 2 1/2 years ago with no money down. I did an 80/20 loan (two loans- one at 80% of the value and the 2nd at the remaining 20%). Any money that you would put down for a down payment in such an instance would be credited to your closing costs that you owe at closing. I've worked in the mortgage industry for about 5 years and this is quite common as the value of houses has soared out of control in the last few years. FM me if you need any advice or have any additional questions.
My BIL is also a mortgage broker and this is what he suggested to us. He told us to invest the money we have. Id rather just pay it up front, but this option is available.
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Re: nothing down?
You can do an 80/20 mortgage but you are going to have to give the seller's something as a down payment. Like the earlier poster said alot of seller's attorney will not allow a seller to take nothing at contract because it is an incentive for you to buy and it a 'security' for the seller which says you are serious about buyer--this is because if you back out they have your downpayment as damages. I had a friend who did this and they put down $12,000 on a $403,000 house but got an 80/20 mortgage.
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Re: nothing down?
when do you first put money down? I heard from one person you put it down when you bid as 'good faith' and if they refuse they give it back.
Someone else told me you dont give money until you sign the contract.
Also when do you get prequalified or preapproved?
Someone told me I should be preapproved while looking and someone else told me you cant get preapproved until you pick the house you want to buy???
I am so confused!!!!!!!
Someone else told me you dont give money until you sign the contract.
Also when do you get prequalified or preapproved?
Someone told me I should be preapproved while looking and someone else told me you cant get preapproved until you pick the house you want to buy???
I am so confused!!!!!!!
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Re: nothing down?
Ok, here's some info I learned recently while house hunting.
Putting nothing down can be risky because you might end up with a 'subprime' loan where the interest rate jumps up in a few years. There was actually an article about it in Newsday today about how a lot of people lose their homes when all of a sudden their monthly payment goes up. Just make sure you have a mortgage broker you can trust!
If you are making a down payment, you give your attorney the check when you sign the contract. Then the seller's attorney puts it in an escrow account until you close on the house. If something happens, like if the sellers decides not to sell or you can't get approved for a mortgage, you get your down payment back. However, if you back out, the seller gets the money.
It is definitely a good idea to get pre-qualified before looking at homes. If you have an honest mortgage broker, he or she should be able to tell you what price range you can afford. Then you should keep your search in that range. But, don't make the mistake I made of telling your real estate agent the amount of $ you got pre-qualified to borrow. Because then they will try to steer you to homes that are only at the highest end of your range.
I hope this helps!
Putting nothing down can be risky because you might end up with a 'subprime' loan where the interest rate jumps up in a few years. There was actually an article about it in Newsday today about how a lot of people lose their homes when all of a sudden their monthly payment goes up. Just make sure you have a mortgage broker you can trust!
If you are making a down payment, you give your attorney the check when you sign the contract. Then the seller's attorney puts it in an escrow account until you close on the house. If something happens, like if the sellers decides not to sell or you can't get approved for a mortgage, you get your down payment back. However, if you back out, the seller gets the money.
It is definitely a good idea to get pre-qualified before looking at homes. If you have an honest mortgage broker, he or she should be able to tell you what price range you can afford. Then you should keep your search in that range. But, don't make the mistake I made of telling your real estate agent the amount of $ you got pre-qualified to borrow. Because then they will try to steer you to homes that are only at the highest end of your range.
I hope this helps!
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Re: nothing down?
Posted by GraceAndAdam
Ok, here's some info I learned recently while house hunting.
Putting nothing down can be risky because you might end up with a 'subprime' loan where the interest rate jumps up in a few years.
subprime only has to do with bad credit.
you can get fixed rate for the 20% (second) mortgage. than you wont have that problem.
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Re: nothing down?
Posted by N.Y.bride
when do you first put money down? I heard from one person you put it down when you bid as 'good faith' and if they refuse they give it back.
Someone else told me you dont give money until you sign the contract.
Also when do you get prequalified or preapproved?
Someone told me I should be preapproved while looking and someone else told me you cant get preapproved until you pick the house you want to buy???
I am so confused!!!!!!!
some realtors ask for a GFD (usually about $100) just to show that you are serious about making an offer. but alot dont. and dont worry, if you do get asked to leave one you'll get it back if you get rejected.
in most instances you leave the money when you sign the contracts. that check, along with the signed contracts, goes back to the sellers attorney and the funds will be held in escrow until the closing. at this time, the sellers sign the contracts and then you are 'under contract' and the contracts are considered fully executed.
there's a difference between a prequal and preapproval. a prequal you can just do over the phone or on a computer and you basically give estimates on information and based on hearsay, they give you a letter stating how much you can afford. a preapproval is what all buyers should get! here you provide more solid information and actually give you SS# so that your credit can be run.
you should get approved BEFORE you even start looking at houses. its in your best interest to know what you can afford and how much the monthly mortgage payments are going to be at different price points. also, alot of realtors will not take you out to see houses unless you can show them a preapproval. they dont want to show you a $600k house when it turns out that you can only afford $450k.
FM me if you have any more questions!
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Re: nothing down?
before the stock market crashed not too long ago, people were able to get a house with no money down. Then your interest was higher than someone with a down payment.
Maybe they are still some programs out there that would let you get off with no down payment.
Maybe they are still some programs out there that would let you get off with no down payment.
