Question by Troy B: Are there any good 1st time home buyers programs to help with down payment and closing costs?
Are there any good 1st time home buyers programs to help with closing costs and down payment? (Either or) I already have pre-approval and now was looking for help with the down payment or closing cost.
As of right now the seller is picking up about 3.5% but that still leaves us with a sizable down payment and closing costs.
Best answer:
Answer by golferwhoworks
there are grant money available and ask the seller to pay closing cost. Your mortgage professional should have the info needed and apply for you
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Those days are gone. The Nehemiah grants ended, and most local programs dried up. If you don’t have the down payment, you are overextending yourself and generally will find it impossible or very difficult to get mortgage approval. This type of lending is why we have the financial crisis, and banks have reacted (overreacted maybe) by going back to reasonable underwriting standards which state that buyers need good credit, stable employment history, adequate income, and down payment.
No money down deals were always a BAD idea (whether 80/10/10 or 80/20 or whatever) because the buyer has ZERO equity in the home, and little to prevent them from walking away. It takes a LONG time to build up equity with that type of loan–might as well rent–it’s cheaper than paying ALL that interest.
SAVE and WAIT until you have the down payment and closing costs. FHA requires 3-5% down and 10% is better. With 20% down you avoid the extra cost of PMI.