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Other questions, what is a rural area defined as? Does it vary by state? Also what if you own a home with no mortgage on it, but you want to buy a home in a different state first, move to it first, then sell the previous one....would you have to have a down payment then?
Thanks.
Other questions, what is a rural area defined as? Does it vary by state? Also what if you own a home with no mortgage on it, but you want to buy a home in a different state first, move to it first, then sell the previous one....would you have to have a down payment then?
Thanks.
What I am seeing in my area is that people with a lot of equity in their current home who want to move to another location without having to sell their current home first are usually refinancing their current home and paying cash for the new home. (Of course this only works if they have additional funds available or are moving to an area where housing is more affordable than where they currently live or are downsizing.)
For most conventional loan programs, the lenders are requiring at least 20% down to purchase a second home . . . and other loan types (such as FHA) only loan on primary residences.
Otherwise the best option is usually to sell first. You're really in a good bargaining position with cash in hand (or soon to have cash in hand within 30 days).
I have seen a few folks get in a bind, carrying two mortgages and their first home doesn't sell as quickly as they had anticipated. Also, some people are surprised to find out that their current home isn't worth as much as they thought; thus they can't afford as much house as they want in the new place. I've had some buyers decide they just can't make the move. Of course, that's sad . . . but not as sad as going forward with a purchase and then discovering it's not going to work for you. In other words, please make sure you've thoroughly checked out the market in both locations before planning a move.
you aren't ready for the responsibilty of homeownership if you can't manage to save a downpayment, not even 3.5% for an FHA loan. what are you going to do if you have a major repair? having saved money for a down payment and for emergencies shows that you will likely be able to keep the home once you do buy. whats the point of buying if have a higher chance of losing it because you were not ready?
Psst.....I think the OP was looking for an answer to the question below
Quote:
Originally Posted by bgmv90
Is it at all possible to buy a house without a down payment?
Is it at all possible to buy a house without a down payment?
Your profile is private, so I can't find out if you have listed a zip code for your location. The answer is, it depends. In the State of VA, we have loans up to 102% for first time buyers at very decent rates (low 5's). Most states have programs funded by non-taxible bond revenue and are typically referred to as "bond loans." But if you don't qualify for one of these programs or USDA, FHA is your lowest down payment option.
1. So I keep hearing, find a lender and ask them questions....how am I going to know if that lender knows all the available programs and whatever? Aren't they going to want you to do it their way only? They want your business.
2. Also, currently owning a house and then wanting to buy a house in a different state for relocation, then move there, then sell old house.....is this always going to be considered buying a second home? Because I heard there are different taxes etc for second homes, and it would only be for like one day...I would move right after I buy the house, then put the other house on the market the same day (I will already have real estate agent ready).
3. I don't know if anyone will know this in this forum section, but is it possible for example...having no mortgage on current home, if I took out a mortgage to buy (second) other home, would they require down payment for 3 months or could it work where the down payment comes out of the mortgage and doesn't need to be in there long because they know about the finances?
Thanks.
Other questions, what is a rural area defined as? Does it vary by state? Also what if you own a home with no mortgage on it, but you want to buy a home in a different state first, move to it first, then sell the previous one....would you have to have a down payment then?
Thanks.
Yes what is considered rural differs by state. Here is a map where you can enter the address of a home and it will tell you if it's eligible for a USDA loan. I believe you said you were in WY
It is pretty much impossible today to get a mortgage without a downpayment except for a VA loan or a USDA loan. Some cities have grants to help low income families and there are restrictions. You are only required to have 3.5% down for an FHA loan. If you can't get that saved up, you may not want to take on additional debt. The 100% financing loans that were approved left and right are part of the crisis we are going through and lending instutions have tightened up the guidelines.
I have a similar question, what if you have another property and don't want to refinance it to get a down payment available, can you somehow use that as "proof" you're a good risk and get 100% financing?
No, but you could take out a home equity loan on the current home to use for the down payment on the new home.
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
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An Honorably Discharged Military Veteran can get 100% financing through the VA program at most lenders. Also, in Northern Virginia and it is available state wide a First time buyer can get a 100% financing VHDA loan. However, not all lenders will do the VHDA because they are paper intensive and cumbersome but worth the effort. Also, with FHA and VHDA you can get the 203K Rehab loan in the event you find a house that needs a new roof for instance. The Streamline 203K could be used to add the cost of the roof to your financing. If there was more substantial work like say the home insppection yielded a structural problem then there is the straight 203K. A HUD inspector would be sent out and do an assessment which basically means that he would write up a bid spec for you that you use top get quotes for the repair. Then the appraisal would be reassessed to see if the house meets the total lending number for the sales price and the repair. Usually it is not a problem if you work with a qualified lender that understands the program.
There are other programs county by county that may help you. In Loudoun County there is a grant program for up to $25,000 which is forgiven over 5 years. Contact your local Realtors, Lenders and government offices for info.
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