Is it possible to buy a house without a down payment?
- loanmasteroneLv 71 decade agoFavorite Answer
You might apply for a 100% mortgage to see if you are qualified. There are a few companies that might would approve a mortgage loan for you.
Your credit scores, assets, earning capacity and credit report would have to reflect a near flawless history.
You would need to contact your local mortgage lender for a mortgage loan application and approval.
I hope this has been of some benefit to you, good luck.
- 1 decade ago
Veterans are allowed to purchase a home with no down payment. They can get 100% financing. In Texas you can get the same 100% but with a below-market loan for Texas Vets.
In more rural areas the US Department of Agriculture offers USDA loans that are up to 100% financing also. If you're in a urban area, the program will not apply there, but some suburban areas are eligible.
From the perspective of a lender the risk is higher with loans where the people don't have anything to lose if they walk away. The 3 to 5% down payment isn't that much to lose either, but it does give pause.
The thing is: if you haven't saved up a chunk of money for down payment, how are you going to set aside money for unexpected expenses when you own a home? If the water heater goes out and you need to spend $400-500 to replace it, will you have money saved up for that, or will you just go into bankruptcy or miss a mortgage payment over hot water?Source(s): I am a Realtor and a loan officer
- Pancho N LeftyLv 61 decade ago
Yes but not likely. If both the buyer and seller agree to the transaction without a down-payment, then the agreement is still valid. However some lenders, banks and financing companies may not agree to participate pursuant to their own particular rules. If they are not part of the transaction and the other parties are in complete agreement, then there should be no problem.
- Rick BLv 71 decade ago
No, and it is a TERRIBLE idea.
If you don't even have a down payment saved up, then how are you going to afford the payments, interest, taxes, home owner's association fees, and all the upkeep? What will you do when the water heater breaks or the A/C goes out?
You should have a MINIMUM of 10% to put down, PLUS 3 to 5% for closing costs, PLUS a 3 to 6 month emergency fund. That is the minimum. Personally, I would put 20% down to avoid paying PMI every month.
IF you can afford a house, then you should have money left over every month. Start putting that money into savings. Once you reach the goals above, start looking for a house.
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- pantleLv 44 years ago
It replaced into earlier the economic device crashed. Thats what reason the housing disaster and all those foreclosure. banks the place giving out credit way too extremely. now after that mistake i might say no this is definitely impossible. additionally, in case you cant save money its in all probability not a physically powerful thought to dedicate to a 30 3 hundred and sixty 5 days loan. training sound economic behavior, like saving, will set you up later for good judgements whilst it is composed of that. i might say wait.