A NO MONEY DOWN THANG!!!!!? IS THIS 4 REAL

Welcome to the DG Family.

Now lets get some info. Are you buying from a private seller or is it an REO. If it is a private seller ask them to carry back th 3% or raise the price of th e hous enough so that they get all of their money and you get no money down. They will actually pay the 3% but the will end up with 100% of asking price + the 3% they brought to table or they can simply "GIFT" you the 3% after they raise the asking price to cover the cost 100%.

I hope I did not confuse you, but you have a few avenues here so I want you to explore them all.

ITS REO OWNED by the way, and no you didn't confuse me

see if you can borrow the 3% from someone or either ask your lender to carry it as a second.

I'm wide awake due to some meds I took for sinus and I caught your post here. I don't know if I can help much, being new myself, but I'll try.

I am trying to sell a property and my bank loan officer told me that here in the city where my property is, there is a "down payment assist" program for certain buyers who are purchasing FHA. I don't know much about it, but they loan the 3% with a deferred payment plan, and even in some cases if you stay in the property long enough, they will discount it or even eliminate the payback all together.

I would suggest you inquire in your city if there is such a program. I'm not sure how widespread this concept is.

Good luck
Jan

Tony,

First off, was the $164k asking price by the bank? If so, think about first trying to negotiate it down, you might find you end up getting it for nice discount from that price.

There is a Down Payment Assist plan as was mentioned above. That is one route.

I'm by no means the resident mortgage expert, and especially not with FHAs, although they seem to be best game in town now, so this is just information I have picked up here and there and going off of recall. Someone correct me if I am incorrect anywhere in here.

Now I've always thought the max concession on a 90%+ finance was 3%, but I have seen lenders claiming a 6% is possible, meaning 103%. I think this is through the Nehemiah program (meaning your home must be part of that program to take advantage). The catch with FHA is 3% of the money must not come via the concession. It can be gifted (Nehemiah gives you 6%, 3% for the down payment + 3% for closing costs).

FHA has 1.5% MIP, then closing costs, so to do $0 money out of pocket you basically need around 103% financing.

If you can get a 103% finance, you will be in the house at $0 money, even maybe some in your pocket depending on how the program is structured, not sure on the money back part. The bottom line is you need another 6%, not 3%:

1) Use the Down Payment Assist programs, like the Nehemiah program.
2) Use state, regional or county based programs that provide a 2nd mortgage for 6% (again, to cover downpayment + closing). California has several, like ACCESS 2000.
3) Investigate other special programs, there are plenty.

Also, I think some laws may prohibit listing agents from kicking back commissions, but perhaps there is a way to for them to forfeit one side of the commission to somehow structure it all.

At any rate, if your current lender cannot figure out a 103% deal, and if they are not a FHA qualified lender and a FHA expert, find a new one. Also, if you haven't negotiated the price, think about that. Some people have had very good luck with knocking a great deal of money off the REO asking price.

You may have intended to help Tony out here, but the info is priceless! Thanks for sharing I will def. add this to my notebook!!!

Thanks Dgadmin!

Beth

The Nehemiah and Ameridream down payment assistance programs are going away October 1st as part of the bailout bill.