Is there a way to buy a house and not fork out any money in the process?

I can afford payments but I have no money saved up. What would be my best bet? I am not selling a house, this will be my first house.

There are lots of banks that do 100% loans if you have good credit, also check for government programs. These are typically run by your state government but there are federal programs too. They can help roll closing costs into the balance of your loan. This way if you can afford the payments but not a down payment, you can get into a home.

Another tip, figure out what your new house payment will be, then start saving the difference between your rent and that payment each month. This will help you save toward the down payment, and help you prove to yourself that you can really afford the bigger payment.

Yes, there are programs to help you get into a house with no money down. You may need to come up with some fees...

Okay, let me see if I can remember all of this. It's been a while. If you have excellent credit, things will be even easier for you. The federal government has programs for first time buyers. And there are programs that will "grant" you the money for your down payment. (verify this information, things may have changed in a year...I worked with some couples who did this and they ended up spending maybe $500 or so out of pocket to get into a house) It really is all 'fuzzy" math. When you make your offer on the house (it is best to have a house in mind...you can get "pre-qualified" by most lenders - check out www.countrywide.com- to find out how much house you qualify for based on your income) in the offer, ask the seller to participate in a grant program (I cannot remember the name of the programs right now) and pay your downpayment and a "processing fee" (you will usually have to offer the asking price plus, the down payment, plus the processing fee, plus closing costs - in other words, you actually finance your down payment by including it in the price of the house -- all of this in contingent upon the property appraising at the price you are financing). So if the house is listed at $100,000 (I know...where can you purchase a house for $100,000 - let's say somewhere in small town Texas), you would offer $108,300 and ask the seller to pay your down payment, grant participation fee and closing cost. **The property must appraise for $108,300...if not, the lender (mortgage co) will ask you to pay the difference...if it appraised for $107,000, they will want you to pay $1300...most mortgage companys will try to appraise the property for the loan amount (I am not sure they are suppose to do that necessarily). A good realtor can help you figure out how much to offer but be aware, the realtor cannot figure "exactly" what the fees will be, etc. So if the down payment of 5% is 5010.00 and closing fees are $2800 and the processing fee is $400...then you are talking very close...closing fees can be even higher, that is just an estimate. This is where you work with your mortgage broker. Find out BEFORE closing if you need to bring your checkbook and how much you will need to pay. Also, be prepared to pay application fees to your mortgage company, anything from $30 to $300. Make sure your mortgage company does not penalize for early payoff. In some states it is illegal to penalize but some states it is not. Find out from the start who pays the realtor fees. In many communities, the seller pays the realtors but I've heard in some areas the buyer pays thier realtor and the seller pays theirs or they slit it or something.

Definately get an inspection done if you are buying a home that is not brand new, under warranty. This is out of pocket, upfront but worth it. I always wrote in my offer "pending inspection", this saved so many butts...buyers were able to get some things fixed before move in or get some $$ taken off the asking price.

If you have credit issues, you will need to have three months payment in the bank and your mortgage company will want to see that you have had it in there for 3 or 4 months (no you can't borrow $5000 from your mom for a few days...they will ask for "history"). Which I guess defeats the purpose...if you had $5000 sitting around, you would have a downpayment.

You may also try buying from an individual (a for sale by owner situation) many times they will finance you for a year or something. If you can prove to a mortgage company you have made payments for a year on the property, they are more inclined to finance you.

Good Luck.

when we bought our first house, the only thing out of pocket was the termite inspection and 350.00 for title company. Our realator got us a first time homebuyers gift fund and rolled all our downpayments into the loan. Payments are also reasonable.

See if the seller is willing to do owner or seller financing. You basically assume the owner's loan. It is a lot cheaper than going though the whole closing process and all that crap. Check out the link below.

While owner carries are a nice option for some, the vast majority of owner carries want a significant down and great credit. People who have that can get their own loan. And finding a house that has an owner willing to finance it is remote.

There are alot of FTHB programs out there with no money down, seller contributes to closing costs (which effects their bottom line, meaning you have to be closer to the asking price). Check with a few lenders in your area about these programs.

In the meantime, save every penny you can. No eating out, hamburgers instead of steaks on the grill, that sort of thing. Don't charge anything new, keep current on the obligations you already have, make that credit score as good as it can be.

Good luck!

This is usually a very bad idea. Alot of people are having their homes forclosed upon now because they got no money down loans with adjustable rates. You should save up as much as you can before you buy, otherwise you have to pay extra mortgage insurance.

Bank of America offers 100% financing, but the closing costs are high. A lot of people are getting the seller to contribute or pay all of closing costs. In Northern VA a lot of buyers are getting anywhere from $5000-$13000 in seller's subsidy. This goes toward your verified funds. Ask your realtor for recent sold homes, the MRIS listing will show the sold price and the seller subsidy amount. You can get an idea of what your area is like.

Did you hear about the guy in Canada that started out with one red paper clip and traded online up to a house?

You will need at least the money it takes to move, turning on utilities and boxes and these days gas is a concern. Even if your credit will get you financed for 110% of the expenses, it will not be a $0 thing. Moving costs. Go to a real estate agent and explain the situation, they will help you budget and see how much you much have to buy a home and help you set some reasonable goals. I bet you can do it!! best of luck to you.

If you have good income and credit you may find a bank that will give you favorable rates on a 100% mortgage. Normally people who do zero down mortgages get screwed horribly on interest rates. The reason is because its a risky loan for the bank. However if you have good income and credit sometimes they may work with you.

Always remember that a start up of a house is never cost free. There will always be some closing costs, there will be immeditate projects or things you will have to buy. Going into a house with nothing in your pocket is never really the best idea. My advice to you would be that if you have good income, you should be able to save a little over the next year. Even if its 5% of the home value it may help your out quite a bit.

It depends on your credit. I would look into your bank and go about the pre-approval process so you know where you stand with that.

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