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can i find a mortgage that does not require a down payment and me paying the closing costs

we are first time home buyers and our household income is over 50000. we live in PA and our fico scores are 720 and 680 by mterrel69707 from , California. Feb 24th 2018 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

Possibly.. First, if you are a military veteran, and you have VA eligibility, then you can do 100% financing. USDA also allows for 100% financing, but the home must be located in a USDA defined area... Copy and past this link into your web browser to check property eligibility. (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp) Conventional Financing requires 3% down, and that can be gifted... And FHA requires 3.5% down, and it also can be gifted.. Also, there might be some local grant programs or down payment assistance programs that you might qualify for. Check with a local mortgage pro.. (stay away from the big 4 banks, they typically don't know about these and some wont finance you if you need to use the programs.).. Now, that addresses the required down payment.. however, you still need to pay for your closing costs.. This can be accomplished several ways.. First, if you have a really good RE agent, they can convince the seller to contribute towards your closing costs.. Your lender can mark up the interest rate and offer you a closing cost credit.. Your real estate agent or the sellers agent can contribute part of their commissions (unlikely) towards your costs.. Or you can get a gift from a family member to pay the costs.. But regardless of who contributes, and which program you use, you will need some funds to buy a home. First, if you want to do a home inspection, then that can run as much as $500. Pest (termite) inspections can cost $100. And these fees' must be paid for in advance. Also, most lenders will make you pay for an appraisal upfront.. This can be another $600 +-.. again, upfront and out of pocket.. Then, once you buy, you will need to pay to have services switched over. electric, gas, oil, water, sewer, trash, etc.. My suggestion is to contact a mortgage banker/broker and apply with them.. They should be familiar with the local grant/DPA programs.. Also, once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with California and Arizona being my primary markets. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 26th 2018
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