No money - but I want a house.....

My friends son at the age of 20, just bought his first home with nothing down, last week. All he did was find a bank and got pre approved first, before even looking for a home. BTW he was on his job for less than a year. The market is bad right now, buying is slow so the market is desprate to sell and many banks are bending over backwards to give loans. So my suggestion is to do the same, go to your bank or any bank and sign up for pre approval for an amount you can handle on a home. They will walk you through it and help you find what is within your limit.

Go find the best realtor in your area and get him to help you. There are programs for first time home buyers, and creative financing, and a realtor really wants to be successful and get you a house. The other idea is to see if you qualify for a Habitat for Humanity home, they are reasonable, but you need to put in some sweat equity. You have to meet certain criteria, as well. Good luck to you. Get lots of referrals on the realtor.Ask people you know about realtor's reputations.

Look for a mortgage specialist before you even go looking for houses. The mortgage specialist will look at all you finances, credit scores, etc, and find the types of mortgages that would fit you best. If you don't have a down payment, you might qualify for a 103% loan, which covers the cost of the house and closing costs, too. However, those types of loans may have a slightly higher interest rate. Most loans that let you pay less than a 20% down payment will require that you purchase mortgage insurance in case you default. You can get a mortgage specialist through many banks and there are also independant ones, which may be better for you because they are not trying to push one banks products over anothers. Ask around to see if your home-owning friends have any recommendations, too. The mortgage specialist will help you judge if you can really afford a house and will give you tips on getting your finances and credit in shape to qualify for one.

If you are handy, you can consider a fixer-upper or got a home that was repossessed. Banks really don't want to own homes so they are usually willing to sell them quite cheap..but again, many need some work.

I wish I could tell you something positive, maildumpster, but the current slump that the housing market is in makes it very hard. Your chances would have been much better a few years ago.