HOME OWNERSHIP

One option for a 100% financing loan is a USDA loan. They will lend 100% of the purchase price of the home and even cover some closing costs. The issue is the loan only applies to certain areas. I would call several mortgage brokers and ask if they have the guide lines for the USDA loan and what areas they will lend in based on your area.

To clarify, the "Other areas," are rural areas.

Some HUD owned homes (foreclosures) are available with $100 down if financed with a new FHA loan, but you have to be an owner-occupant (live in property).

Try to find a distressed homeowner and negotiate a subject to. The only problem is, if they are behind you got to catch that up, but some people act before they get behind.
Good luck.
Thomas

USDA loans : Will actually loan up to 102% of the appraised value. The seller can also "kick in" up to 6% concession for closing costs,(the same as all loans will allow). While FHA loans are 96.5% (3.5% down payment) they will allow a "gift letter" of up to 10K from a family member (that's not only willing to loan they money, but fill out the form also).
Remember USDA loans can be only available in certain geographical areas.

Tim,
There are many homeowners that need to move to another state for different reasons, and cannot sale their properties and cannot afford two mortgages. Some don't need a down payment, just someone who can make the mortgage payments until you can qualify for a loan with a bank...you need to look for those sellers....they are out there...they will be happy to cary the note!

Hey Tim,

My wife and I took a USDA loan on a house just down the street from where we were renting a house. It is 100% no money down. Only thing we needed to supply was closing costs, which was $2442.00 on a $122K house here in Bremen, IN. You can negotiate the owner pay closing costs, if they'll go for that. In addition, the USDA loan can only be acquired through certain banks. I happened to have a quick in on one since my sister works at a bank. Check with credit unions and other various banks, not necessarily the mainstream banks (...But not excluding them either. Never hurts to check). Banks like Chase only handle FHA loans.

Other benefits to USDA loans include:

* Absolutely no money down to acquire loan, unlike FHA loans, although you can still apply money down if you want to.

* Can have income of other persons living with you on loan without having them written into the loan, goes by Total Household Income not by each individual's paychecks.

* Approximately 30% lower monthly insurance cost. We were quoted $110/mo home owners insurance for FHA and $35/mo for USDA.

* FHA requires you to live in a home purchased with their loan, in most cases, for 5 years before you are allowed to sell the house. USDA has no such restrictions, that I am aware of and was not made aware of. USDA has less regulatory red tape you have to deal with in getting and maintaining the loan.

* Be advised that your loan may be sold once or twice to another bank before finally landing at a bank that will hold it. The bank that set up our loan doesn't handle home loans, but they set it up to finalization...then when we signed on house and paperwork sent in, the loan was sold to another party. That party in turn is using Chase bank to collect payment for them. That worked out because we bank at Chase. This may or may not happen to you, and may not be specific to only USDA loans. I believe it happens regardless of FHA or USDA type.

Other than that, it was a fairly painless process...other than waiting to be accepted for the loan.

Hope this helps.

Jason

Great information Jason! Thanks for sharing!

Hey guys you all helped so much now I know
Where to start thank you so much for solid information
Can't say enough thank you. Also thank you for any comments after
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