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Any hope for a no money down loan?

I have been employed by the DOJ for over 25 years and have been paying $1200 rent for three years now. My credit is good, 700-725 range, and I am coming off a deed in lieu in 11/10. Our current savings is only hovering around $7500 because I have been trying to pay off any outstanding revolving credit. Are there any scenarios out there, besides a USDA loan, for my family to get into a home with little or no money down? I have heard of some bank owned properties with special financing or short sales where no money down is a possibility. I'm not a dead beat and there is no problem with me handling a 1200-1300 a month mortgage, we have just been unable to build up savings with my wife staying at home with our two small children. by whags334 from Jacksonville, Florida. Jul 24th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,369 contributions

You will have to wait till December this year to apply since you need to be beyond 3 years from a Deed in lieu. FHA looks at a DIL the same as a foreclosure or short sale, so you need to comply with the mandatory waiting period.. Keep in mind the lenders look at your past credit and how you deal with adversity to determine your eligibility.. in your scenario, you have a good score, but you also have one of the worst derogatory items you could have.. Foreclosure... so regardless of how responsible you feel you are, your credit shows differently.. none the less, there is hope for you.. once you get past the 3 year mark, HUD is offering specific homes in Florida for $100 down. Also, if you have VA benefits, you can do zero down. There also might be some down payment assistance programs available in your area.. by reaching out to a local mortgage broker or real estate agent, they should be familiar with any DPA being offered.. which ever way you go, you will need to be past the 3 year mark before applying.. Good luck.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 24th 2013
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Jacob Haddan (JacobColeHaddan)
#70 ranked lender in Colorado - 36 contributions

Wow lots of good answers here. I can help if you like try to submit now for an exception. Its called a to be determined approval or submitting for an acception to normal waiting periods. Its a low 20% chance shot but I would be willing to look at it if you take a full loan application. But here is the real deal on waiting periodsYou had a Foreclosures in FHA eyes thats a hard 3 yearsYou had one in fannie and freddie thats 4 years. If you continue to make your payments and do what you have been doing you should have no problem in getting financed once you hit the waiting period mark. My contact infoJacob 720.210.7898 iPhone call or textJacob Cole Haddan - Mortgage Broker/Banker MAC5 Mortgage Inc. |www.jacobdenver.com| 7395 E Prentice Ave, Ste. 200 Greenwood Village CO 80111 | iPhone: 720.210.7898 |Fax 1.866.426.2203 Regulated by the Division of Real Estate CLICK HERE for my online application NMLS#232061 Colorado LMB# 100007576

Jul 24th 2013
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You are able to do an FHA loan with 3.5% down and there are also programs available for down payment assistance. You can reach me at 800-775-0906 Julie HuffRiverview Mortgage

Jul 24th 2013
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David Sanders (David_Sanders)
#802 ranked lender in California - 59 contributions

Hi Whags, FHA Loan is probably your best bet. There are down payment assistance programs in certain states. 3.5% is the min down payment. Also you may want to check because certain lenders do have seasoning requirements after the Deed of Lieu occurs.

Jul 24th 2013
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Thank u for all the good advice, my leAse is not up until 12/1. How soon should I start working on the qualifying for a mortgage and is there a best time of year to look into DPA?

Jul 24th 2013
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Steven Cook (stcookmortgage@gmail.com)
#39 ranked lender in Washington - 256 contributions

Unless, as was mentioned by William, other than USDA, you qualify for VA benefits, there is no other direct no down payment program available.However, as Julie noted, you should check with a local, licensed mortgage professional, to determine if there are down payment assistance programs available in your area (they could be run by state, county or city). Those programs usually have a non-payment "silent second" type of situation, where you only have to pay if your refinance, or sell the property.To get into conventional/conforming loans, you would need to have 20% down, until you are 4 years out from the deed in lieu. At that time it islowered to 10% down - but then you are back into mortgage insurance, like with the FHA loan, though at lower cost. Good Luck.

Jul 24th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#28 ranked lender in New York - 2,238 contributions

You will need to wait until November after that there are a few options we can explore to see what best suits your needs. If you are a Veteran a VA loan can get you 100% financing as well. There is also HUD $100 down homes as well!Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation ask for Michelle or Benny. We will find the Best Mortgage Option to suit your needs! Check us out at www.BestMortgageOption.comAsk us about the awesome discounts we offer heroes as a Homes for Heroes affiliate!

Jul 24th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,717 contributions

Once your Deed-In-Lieu is 3-years old, you may have options. With that said, there are plenty of local, state, and county assistance programs that may be available in your area. Each location is different, so be sure to speak with a local mortgage broker for options. For example, here in Minneapolis, St Paul, I have a 3% down conventional program, where you only need to contribute $1,000 and you can get a loan for the rest of the 3% down up to a maximum of $5,000. www.MnBestRates.com

Jul 24th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

I believe most if not all your options have been covered by all the expert mortgage pros here on this site. The best thing to do at this time is to talk to a local mortgage banker or broker for the best options for you. If you need help with that you should be able to find one here on Lender 411. You may also check with your local real estate agents for referrals.

Jul 24th 2013
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I am curious as to why you are setting aside the USDA program? There are only 2 programs available that allow for no money down scenarios (VA and USDA) that I am aware of other then local Muni programs or Police and Fire programs. I would be happy to discuss this further if you are interested.

Jul 24th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Contact me off forum, at primefinancial@frontier.com, to discuss some options.

Jul 24th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Check with you local county government for hud assistance programs to help with the down payment moneys

Jul 24th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

You need at least 3 years time after your deed in lieu- while waiting for the 3 years to elapse, contact a local banker or broker who can help you begin theprocess- ask the lender if there are any special programs available in your state with down payment assistance......etc

Jul 25th 2013
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U guys r so helpful, thanks so much. I have researched a couple programs and it looks like I may have issues because I make 75000 but my wife doesn't work. Are most down payment programs have high income limits?

Jul 27th 2013
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