The only 100% loan right now is if you purchase in the rural areas the USDA has a Rural loan.
If you purchase a home that previously had an FHA loan on it that is now owed by the bank (REO) they are asking for only $100.00 down.
If you qualify for Calstrs they have an 80/17 loan. It requires 3% down and allows the seller to pay up to 3% of your closing costs. The 3% down may be a gift. You do need to have 1% of your own money invested in the loan, which may be toward your impound account, the appraisal and your earnest money deposit. The 2nd is 17% and is deferred with simple interest for 5 years at the same rate as the first. After the fifth year you will start paying on the 2nd with the simple interest added over the last 5 years amortized over 25 years so the 2nd mortgage will be paid off at the same time as the first.
We understand it is difficult to save enough to put twenty percent down. Right now you can get the new and improved FHA, which is more user friendly than it used to be in 2004 and earlier. The mortgage insurance is discounted, they will allow the seller to pay 6% of your closing costs and impound account and the required 3.5% down can be a gift from a relative....so virtually you have a 100% loan.
The termite report is not mandatory on FHA anymore unless the house is older than 60 years, or the appraiser points out termite infestation. It is always recommended to get a termite, it just is not mandatory.
Don't think that saving for a down payment should be the reason you put your dreams on hold. We can help you buy your dream home. You'll not only be able to afford a home sooner, you'll probably be able to afford more home since rates are so low right now. The determining factor to qualify for a loan is determined by your ability to make your monthly payments rather than how large a down payment you've saved. Your credit score is extremely important and tells the lender if you are responsible with your debt by your payment history on other credit items.
Receive the maximum $8,000 tax credit (10% of the purchase price up to $8,000) if you close your owner occupied home by November 30, 2009. You may not make over $75,000 as an individual or $150,000 as a married couple and you must be first time home buyers.
Let me help you. After reading the articles and information pertaining to your interests, don't hesitate to call. I enjoy answering your questions and explaining what terms means.
