i am interested in buying a home. does anyone know if i could get 100% financing with a bank owned home?
Dec 07, 2009
in
Commercial Mortgage FAQ
i want to buy a home but i have no down payment and i have fair credit. I am a first time home buyer so i was thinking in maybe getting a bank owned home. another thing is i have a lease in my apartment and what if i find a house before its over, what happens then? can any one help. I could really appreciate it. thank you for your time.
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3 comments
MJ on December 7, 2009 at 6:55 am
In the current mortgage market, it’s darn near impossible to purchase a house without ANY downpayment. Congress/Current Admin, just passed a dp assistance law that allows first time buyers to basically get a tax credit for $7500 towards purchase of home. But they are starting to eliminate DPA programs in October. Also FHA is increasing dp required from 3% to 3.5% and FHA is one of easiest loans to get at moment.
There may be a mortgage lender around that provides 100% financing but I don’t know of any at the moment, who would not require perfect credit to be approved. And you just say you have fair credit. So I think you might start saving for that dp or try to get dpa from a company while it’s still around for the next month or so, only.
acermill on December 7, 2009 at 6:55 am
You get no preferential mortgage treatment when purchasing a bank owned home. You will need the same levels of downpayment and credit rating to obtain a mortgage, regardless of the house you choose.
Relative to your lease, you can check with your landlord to see what their stance might be on letting you out early. If they do not agree to do so, you are responsible for the lease until it is either satisfactorily re-rented, or until the lease expires.
sinyorita on December 7, 2009 at 6:55 am
Even with people with exellent credits, bank are no longer giving 100% financing and are requiring a minimum of 3% downpayment. You can try the FHA financing since in some states you can pay $100 downpayment, BUT you would still be responsible for some closing cost.
As for the lease, read the agreement. What does it say about breaking the lease? Would they allow you to break the lease if you bought a house? In most cases they make you pay a fee to break the lease and even after that you will be responsible for rent until they can find somebody to rent the apartment. What you can do is if you have a house and everything is scheduled, you can move the closing date to coincide with your lease end. If its after your lease is up you can go month to month. Otherwise you can advertise your apartment at craiglist.org for somebody to take over your lease.