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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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is it ever a good idea to buy a house/get a mortgage with no money down?
just looking at all of our options... all opinions are appreciated, thanks!
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Posted 5/21/08 10:31 AM  |
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LuvMy2Girls
@>---------
Member since 5/05 11165 total posts
Name:
Mommy
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
a friend of ours did it last year-He's happy with his decision.
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| Posted 5/21/08 10:32 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
if you can get approved for a loan that way-
and have money in the bank for stuff that comes up
then I think it's fine
but most banks now want 3% minium-
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| Posted 5/21/08 10:37 AM |
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LiveAgain
Listen close....
Member since 8/07 3545 total posts
Name:
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
DH and I were thinking about selling our house to upgrade but we would have a VERY minimal return if any from our current house.
One of the realtors we were talking with said that it would be a slim to none chance of getting a decent mortgage agreement without at least the 20%, he told us about PMI and other things but I got so lost!!
Since we were only getting an idea when it came to things, do I believe him...ehhh...who knows with how the current housing market is.
It's always better to put at least a little down....lower payments are never a bad thing
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| Posted 5/21/08 10:38 AM |
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Theresa05
Sofialiciciousssssssssssss
Member since 10/06 4891 total posts
Name:
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Wow, I thought you always had to have 20%
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| Posted 5/21/08 10:38 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Posted by Beth1210
if you can get approved for a loan that way-
and have money in the bank for stuff that comes up
then I think it's fine
but most banks now want 3% minium-
ditto.
If you do it in a smart manner, then it is. If you are doing it because you simply have NO money, no reserves, then no, I don't think it's ever a good idea.
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| Posted 5/21/08 10:39 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
No because you will probably be paying a premium on your interest rate for the bank to commit to a loan with no money down.
Higher interest rate = higher monthly payments = not as good of a deal on the house
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| Posted 5/21/08 10:39 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Posted by LiveAgain110
One of the realtors we were talking with said that it would be a slim to none chance of getting a decent mortgage agreement without at least the 20%, he told us about PMI and other things but I got so lost!!
that's is NOT true
realtors want you to put 20% down b/c then you most likely wont walk away from the deal - which means $$$ for them-
FHA loans require 3%
and most banks are happy with 5-10%
the 20% rule is a myth-
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| Posted 5/21/08 10:42 AM |
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
You don't need 20% down, but like Beth said probably more around 3%.
When we were doing our mortgage in October, they were doing away with the total 100% financings at Wells Fargo.
Looked into refinancing and for that Citi and Wells are at least looking at 90% LTV.
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| Posted 5/21/08 10:44 AM |
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igottabeme
Its peanut butter jelly time!
Member since 1/08 2340 total posts
Name:
Wouldnt you like to know! ;)
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
if a bank will approve you with no money down and you feel comfortable with the rate and monthly payment AND still have some money in the bank for emergencies then i dont see why not.
HOWEVER, alot of banks are leary to lend with no money down. alot will look for the FHA minimum of 3%.
you also have to remember that there's really no such thing as "no money down". no seller will ever go into contract on a deal without some kind of money held in escrow until closing.
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| Posted 5/21/08 10:47 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
and there are the closing costs as well
you will either need to pay them out of pocket
or do a sellers concession- which rolls them into the payment
the house has to appriase for MORE then you are paying for it do this- and the seller must agree
you take out extra money on the loan to cover the cost to close
and if the house doesn't appraise for more then the loan- you will not be able to do that
most banks also want to see 3 to 4 months worth of mortgage payments in the bank as well
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| Posted 5/21/08 10:50 AM |
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belladi
LIF Adult
Member since 9/06 1011 total posts
Name:
diana
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I wouldnt not , thats why there are so many foreclosures and the market is a mess..
Just be careful and realistic
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| Posted 5/21/08 11:18 AM |
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headoverheels
s'il vous plaît
Member since 6/07 42079 total posts
Name:
LB
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
i didn't think this was an option for us (we have some savings but it will probably get used up when the baby comes). i just wanted to make sure. thanks everyone for all of your input!! 
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| Posted 5/21/08 11:38 AM |
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DeniseMarie
<3
Member since 8/07 10682 total posts
Name:
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
We paid the closing costs out of pocket which were about $8000. We did not put any money down towards the house itself. I don't regret our decision.
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| Posted 5/21/08 12:00 PM |
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beautyq115
New Year!
Member since 5/05 13729 total posts
Name:
Me
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I didn;t think that they were doing that anymore...We were given a hard time about putting 5% down! That was in December though when the %hit was hitting the fan about mortgages though
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| Posted 5/21/08 12:10 PM |
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Sandy55
My family ROCKS!!!
Member since 2/08 1219 total posts
Name:
Sandy
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I heard they weren't allowing that anymore?
I heard you need at least 8%.
I could be wrong.
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| Posted 5/21/08 12:21 PM |
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donegal419
St. Gerard, pray for us.
Member since 7/07 7650 total posts
Name:
K
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Dh and I were just approved for a 5.75 % rate mortgage with only 5% down. We had more to put down, but then we wouldn't have much left for closing costs or a safety net. they were happy with 5%.
On LI, it is next to impossible to put down the 20% or the third that was done many years ago. 20% of $400,000 is $80,000 cash... not counting closing costs, so it's a lot.
for 0% down though, your interest rate on the mortgage will be higher and you will have to pay PMI... basically insurance on the mortgage. banks do this to protect themselves if you default.
with everything going on right now with the mortgage mess, i don't know who gives 0% anymore... we were lucky to get away with the 5% and that's because I have no debt and great credit.
GOOD LUCK!
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| Posted 5/21/08 1:26 PM |
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
We did it. It costs us a little more each month but in the grand scheme of things it's no big difference. It got us into the house when we wanted, rather than waiting forever to save up 20% while continuing to throw $$ away renting. It was the best option for us.
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| Posted 5/21/08 1:37 PM |
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Theresa05
Sofialiciciousssssssssssss
Member since 10/06 4891 total posts
Name:
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I guess its different bc we are builing.
I needed to put 56k down and then another 56K I have to have when we close...
I guess new constructions are different
good luck!
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| Posted 5/21/08 1:54 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I picked out my lot and had my house built and all I had to do was put down and earnest money deposit (something like 3-5k) and I didn't have to do/give anything until we closed (which was after the house was completed). There are different variables to every situation.
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| Posted 5/21/08 1:56 PM |
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Melmel821
Love being a mom!
Member since 5/08 2776 total posts
Name:
Melanie
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
My father suggested this to FH and I and I didn't even want to hear it. I could only imagine what the monthly payments are going to be! And don't forget if you want any new furniture (in our case we had no furniture) or if you need to up date the house etc... Everyone's situation is different, in my situation I couldn't do it. We'd be house poor! But if you can swing it, it may be a good option for you.
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| Posted 5/21/08 4:27 PM |
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1stimemom
Love my boys
Member since 2/08 8766 total posts
Name:
Mrs Dee
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
I did it and am very happy. I think it is 7/mo for every thousand or something like that, plus the low interest rate, plus intrest is tax deductible... I think it is the smarter way to go!
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| Posted 5/21/08 4:53 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Posted by Melmel821
My father suggested this to FH and I and I didn't even want to hear it. I could only imagine what the monthly payments are going to be! .
putting down $20K or even $50K isn't going to make a HUGE difference in the payment on a house on LI
the interest rate is- if you can still get a low rate with little money down- and yes this is still possible I promise you with over a 700 credit score
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| Posted 5/21/08 4:59 PM |
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katiebell
Hoping, wishing, waiting....
Member since 8/06 1418 total posts
Name:
K
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
We did it this past Sept. The only money we put down was $1000 earnest money. We even had the seller pay all of our closing costs. I think at closing I had to write a check for $300 or something like that. Our interest rate for a 30 year fixed 10 year intrest only was 6.25%. And we didn't have to have PMI. Our payments are only a few hundred more then what we were paying in rent. We never would have been able to buy otherwise.
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| Posted 5/21/08 5:16 PM |
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MrsD06
LIF Toddler
Member since 9/07 478 total posts
Name:
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Re: is it ever a good idea to buy a house/get a mortgage with no money down?
Posted by donegal419
Dh and I were just approved for a 5.75 % rate mortgage with only 5% down. We had more to put down, but then we wouldn't have much left for closing costs or a safety net. they were happy with 5%.
On LI, it is next to impossible to put down the 20% or the third that was done many years ago. 20% of $400,000 is $80,000 cash... not counting closing costs, so it's a lot.
for 0% down though, your interest rate on the mortgage will be higher and you will have to pay PMI... basically insurance on the mortgage. banks do this to protect themselves if you default.
with everything going on right now with the mortgage mess, i don't know who gives 0% anymore... we were lucky to get away with the 5% and that's because I have no debt and great credit.
GOOD LUCK!
I hope you don't mind me asking if you're paying PMI? I was told recently that the less than 20% down with no PMI loans no longer exist.
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| Posted 5/21/08 6:49 PM |
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