Many people today would love to purchase a Home in this incredible Buyers Market but they think they need tens of thousands of dollars for a down payment. This is simply not true. A littel known government program allows any buyer to own their dream home with absolutely Zero Down Payment.
The following is a process to step you through the bascis of buying with absolutely no money out of pocket. This government program is approved by HUD and completely RESPA compliant.
Find an FHA/VA approved Mortgage Planner that specializes in working with a DPA. A DPA is a down payment assistance program. One of the more popular DPA's is the Nehemiah program. Nehemiah has assisted in funding over 275,000 real estate transactions since 1998 and is completely HUD approved and RESPA compliant.
Next you will get pre-qualified for a down payment assistance program with a certified specialist. The most important part of qualifying is income verification. You must provide your last 2 years of income verification. Fortunately, credit is flexible. Typically credit scores must be around 580 to qualify but in some cases you can go as low as 550. This is NOT a first time homebuyer program. Anyone buying an owner occupied property is eligble.
Begin your home search. FHA limits have been raised to as much as $729,000 in some areas such as Los Angeles county. However, most areas go up as high as $423,000. For many areas $423,000 buys much more than a starter home in todays market which makes home shopping a snap.
Now your realtor must begin the negotiations with the seller. The sellers assistance is vital. They must participate in the DPA by funding the closing costs to you and down payment to Nehemiah (or whatever DPA you choose). The seller will be required to contribute 7-10% to you through Nehemiah and closing costs. Expect to offer closer to the list price of the property since you are requesting a large contribution. The seller is generally concerned with how much they are walking away with so the contribution is not important to them.
Apply for a mortgage with a Certified Nehemiah specialist. Choosing the right specialist is an important step due to the complexity of Nehemiah and the FHA. An inexperienced "Broker" can cost you time and money and perhaps even cause you to lose your contract.
The requirements for qualifying are fairly simple. You will need your last two years of tax returns or W-2's. You will need to have your most recent paystub and 2-3 months of bank statements. If you are renting right now you will also need the last years worth of cancelled checks or a letter from the property manager.
Last but not least is your closing. Many people worry and sweat over this part but if everyone has done their job then it is smooth and seamless. By now all your questions have been answered and there should be no surprises. You know what you rate is, what the term is and how much money is required - ZERO! It's such a pleasure to see new homeowners walk away from closing with a low 6.0% fixed rate and their new home - wow! You can do it - don't let this opportunity pass you by.
The following is a process to step you through the bascis of buying with absolutely no money out of pocket. This government program is approved by HUD and completely RESPA compliant.
Find an FHA/VA approved Mortgage Planner that specializes in working with a DPA. A DPA is a down payment assistance program. One of the more popular DPA's is the Nehemiah program. Nehemiah has assisted in funding over 275,000 real estate transactions since 1998 and is completely HUD approved and RESPA compliant.
Next you will get pre-qualified for a down payment assistance program with a certified specialist. The most important part of qualifying is income verification. You must provide your last 2 years of income verification. Fortunately, credit is flexible. Typically credit scores must be around 580 to qualify but in some cases you can go as low as 550. This is NOT a first time homebuyer program. Anyone buying an owner occupied property is eligble.
Begin your home search. FHA limits have been raised to as much as $729,000 in some areas such as Los Angeles county. However, most areas go up as high as $423,000. For many areas $423,000 buys much more than a starter home in todays market which makes home shopping a snap.
Now your realtor must begin the negotiations with the seller. The sellers assistance is vital. They must participate in the DPA by funding the closing costs to you and down payment to Nehemiah (or whatever DPA you choose). The seller will be required to contribute 7-10% to you through Nehemiah and closing costs. Expect to offer closer to the list price of the property since you are requesting a large contribution. The seller is generally concerned with how much they are walking away with so the contribution is not important to them.
Apply for a mortgage with a Certified Nehemiah specialist. Choosing the right specialist is an important step due to the complexity of Nehemiah and the FHA. An inexperienced "Broker" can cost you time and money and perhaps even cause you to lose your contract.
The requirements for qualifying are fairly simple. You will need your last two years of tax returns or W-2's. You will need to have your most recent paystub and 2-3 months of bank statements. If you are renting right now you will also need the last years worth of cancelled checks or a letter from the property manager.
Last but not least is your closing. Many people worry and sweat over this part but if everyone has done their job then it is smooth and seamless. By now all your questions have been answered and there should be no surprises. You know what you rate is, what the term is and how much money is required - ZERO! It's such a pleasure to see new homeowners walk away from closing with a low 6.0% fixed rate and their new home - wow! You can do it - don't let this opportunity pass you by.
About the Author:
Before you go any further, make sure that you get the complete picture and check out Rob Kosbergs' Blow by Blow FREE Guide on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog
No comments:
Post a Comment