Is it possible to buy a house without a down payment?

United States
June 22, 2008 10:15am CST
I've been working on getting my credit up to meet one goal; buy my own house..but I don't want to just get a loan and be done with it. I want to be able to have a low intrest rate and I'm not sure but is it possible to get that without a down payment?
2 people like this
7 responses
@Bethany1202 (3432)
• United States
22 Jun 08
I don't know much about buying homes. I am trying to save up a little extra for a decent down payment myself, because I know it's better to have it. I had very bad credit, my score was only about 530 a few years ago. I got rid of my piece of crap husband and have been using credit wisely to get my score back up, and now it's up to over 710 last time I checked, which was about a month ago. Hopefully in another 6-7 months I will be able to purchase a home. Best wishes to you in your endeavor! Hopefully things work out well for you and me both!
@irishidid (8526)
• United States
22 Jun 08
There are programs that help with down payments. I'm not sure where you would go to find out but I would start with real estate agencies. They should know or can lead you to the proper place.
1 person likes this
@luvstochat (6914)
• United States
22 Jun 08
It all depends on your credit and debt to income ratio. Where I live ther is only one no downpayment loan left and it is also the only one that will let the seller pay your closing but it has strick debt to income guideilines. You can check with your local mortgage broeker to see what your options would be.
1 person likes this
@polachicago (19075)
• United States
22 Jun 08
You can do it, but it is not smart way to do. Try to have at least 3% of down payment to reduce interest rate and avoid to have first and second mortgage. With 100% financing you are forced to have 80% and 20% mortgage. First is at lover percentage, second is very high. Overall, you end up paying way too much.
1 person likes this
@cream97 (29169)
• United States
22 Jun 08
Yes, if your credit is good enough, I guess. I know that my sister only paid $2.00 and some change for her closing costs. But I also guess, that it has a lot to do with what Real Estate Agency does this..
1 person likes this
• United States
2 Jul 08
It is possible. When we bought our house, we got a 103% mortgage which also covers the closing costs as well as the purchase price of the house. It was a loan for first-time buyers from our state's housing development authority. The intrest rate was a bit higher (7.25% as opposed to the going rate of 6.5% for a regular loan at the time), but we didn't have to pay mortgage insurance at all, so it was still a cheaper monthly payment. Usually, you have to pay mortgage insurance unless you pay a 20% downpayment. If you put in a smaller downpayment, you have to purchase mortgage insurance until you have paid off 20% of the value of the home. You need a good credit score to qualify for this type of loan (especially now!. I would recommend you go to a mortgage specialist and talk with them about your situation. Preferably, use one recommended by your friends or workmates who have bought houses. Don't try to do it online, face-to-face is best for this kind of thing. Oh, and don't use anyone who tries to get you an ARM loan. Good Luck.
@fwangaa (3058)
• China
26 Jun 08
yes ,i have paid for 50 thousands for my down payment to buy my own house.