Of course! One of the best programs right now is USDA Rural Development Housing Loan which is 100% financing and no money down! This program is AWESOME and I can send you listings that are available for this program that meet your criteria. Just give me a call or shoot me an email and let me know what you are looking for in a new home. You can reach me at 850-591-2599 or email me at julie@ringtherivers.com and I can answer any questions that you may have. I look forward to talking to you soon.

Julie Cox-Money
Buyer Specialist
The Rivers Team
Keller Williams Realty

USDA Guaranteed Rural Housing Loan/100 % No Money Down - This loan is used by borrowers to purchase a home they will personally occupy. This 30 year fixed rate mortgage is offered to families whose income does not exceed 115 % of the median income for the area (to see a chart of incomes limits by family size click here). There is no loan limit as long as the borrowers meet income ratios. This no down payment loan can be used to purchase rural property (most city properties in Western Colorado and Southeastern Utah are eligible). Closing cost and repairs can be included if the appraised value warrants. There is a 2% up front Funding Fee, but this loan does not require monthly mortgage insurance premium. New homes have a minimum landscape requirement.
Have you looked into this one

Lending answer:

There are three mortgage products available to banks, lenders, and mortgage brokers that provide 100% financing. Each product has certain restrictions. The products are:

FreddieMac HomePossible 100 - requires minimum credit score of 700; income restrictions apply
Veteran's Administration VA Mortgage - must be an eligible veteran
US RDA - Some geographic restrictions apply.

I would call a few banks and lenders and ask if they offer any of the above loan products. If you are not eligible for any of the three, then an alternative suggestion would be to apply for a SHIP grant through Leon County or Tallahassee. Each county and/or municipality sets it's own rules for SHIP grants, but the key feature in common will be income restrictions. The grants include substantial down payment funds plus assistance to cover closing costs.

As Karen points out there are risks with 100% financing when home values are declining. The main risk hinges on if you plan to keep your home long enough for housing values to recover... which may be 2-5 years before you would begin to build equity. During that time it is possible that your newly purchased home may decline in value, leaving you "upside down" for several years. This would keep you from selling, refinancing, or tapping home equity for an emergency.

On the other hand, home owners with equity are the first bearers of risk in a declining market. Once you've purchased your home, the year-by-year change in your home's value has no impact on your mortgage... but if you have locked up cash in equity, that cash is essentially "lost" until your home's value returns to the purchase price when you closed. It may be wiser to keep down payment cash in the bank for emergencies rather than locking it up in equity especially considering that "tapping home equity" means paying interest and closing costs to convert equity back to cash.

A good mortgage sales rep can advise you on the best course of action for your circumstances.

what NONE of these realtors are telling you (because they are only in it to make a sale) is that this is a TERRIBLE time to buy with ZERO down! Tallahassee is in a declining housing market. If you have no money to put down, you have NO business buying right now. Most zero down programs will rely heavily on the appraisal of the home, basically you will need to find a home that is worth more than you are paying for it. GOOD LUCK finding that in this market. These realtors need a reality check!

Mz. Nic:

If you are still trying to buy a home and need some help, the answer to your question is yes. There are so many ways to accomplish this that you need to sit down with somebody who will work you through the process.

Please feel free to visit our site and request a custom buyer package if you would like to purchase a home and pay nothing out of pocket.

Yes, there is a way. Keep in mind though that there are up front front expenses that you will generally have to be prepared to pay out of pocket, such as your deposit to the seller, your appraisal (unless you are able to pay it at closing) and a home inspection if you choose to get one. From there, my goal is always to ensure that my clients come to closing with $0 out of pocket...sometimes they even get a little money back at closing! I have information regarding every down payment and closing costs assistance program imaginable on my website: http://www.KeanthaBelton.com and click on Buy My First Home. All of my contact info is on my website and I am only a phone call or a click away! Take Care & Best Wishes.

Hello Ms. Nic,
Good question and a great time for buy. Interest rates are still very low and there are some great bargains on the market.
You've been given great answers by the other Realtors on this question too. Talking with lenders and finding out what amount you could qualify for is the first step. Yes, the Lenders Consortium does have programs to help, but they are not the do all/end all of assistance. A number of the banks in town provide programs for first time homebuyer downpayment assistance. It's based on a number of things, including how much money you make and of course interest rate is partially determined by your credit rating. I recommend calling several of the local banks and asking about their first time home buyer programs and assistance. If you are ready to buy, I recommend checking with them all during the same period of time, get their rates and see what they can do for you. You really have nothing to lose by talking with them and if for some reason you cannot purchase, most lenders will provide you with suggestions on helping you get there financially.

Good luck. Of course, call me for any assistance, contact names for lenders or any other questions you may have.

Angie Goodman, Broker Associate, Keller Williams Realty, 850-321-4666, angieg@kw.com

Mz. Nic,

The basic answer to your questions is YES!! You absolutely can get 100% financing through one of the available programs, and, if you qualify, can get additional financing for the closing costs, even with your husband's lack of credit. E-mail me at MaryAdkison@kw.com or call me at (850)491-2721and I will get you in touch with my lender, who will be happy to explain all the available programs out there and match you up with the perfect loan. Then we can help you find that dream house for you and your husband. I look forward to hearing from you soon.

Mary

Hi Don T.,

Yes, I have looked at my credit report. The last time I check my score was about 704. If need be, we could put some $$ down but I was trying to keep our out of pocket expenses to a minimum.

Hi Nic,
The Lenders Consortium is only one of the programs available as a first time homebuyer and can provide Down Payment Assistance and Closing Cost Assistance, that in some cases, you do not have to repay... Here's a link to there website.. http://www.tallahasseelenders.org/
Do not hesitate to contact me if you would like more personal direction..
Good Luck and Regards,
Joanna Schmidtchen
joanna@ringtherivers.com
850 443-2600

Nic,

I am the master of creative financing where if you havea 680+ credit score, we can get you into the home without a down payment (no income, no assets) and keep your interest rate under 6.5% (if your loan amount meets FNMA standards). All we would need is a tiny equity gift of 5%. Email me when you can: anthony@nationalcurrencyresources.com

You can always buy with no money down. That just means no money up front. It also means higher interest rates, harder qualifying, a riskier transaction, prepayment penalties and less flexibility. You may as well go out and rent. Your monthly costs will out pace your equity position and you will end up renting your house from the bank. That is what they call it when you pay month after month to live some place where you have no equity. Without equity it will cost you money to move out of the place. Not the best way to "buy" your families first home. If you are buying an investment and you have sufficient capital and viable short-term exit strategy, you are talking about a completely different creature, but not for your first home. Save 3% of the purchase price of a home you can afford, get a nice FHA loan and ride the appreciation train. Leave the high leverage deals to Donald Trump.

Nic,

Absolutely!! I have an in-house lender that specializes in programs for first time home buyers with the issues you cited. Call me at 850-491-2721 and I'll be glad to get you that information.

Mary

The approach suggested by Kim is a good one. Lots of areas have "new home buyer" type programs, or other programs that offer great incentives. However, you might also consider lease-options and lease-purchases. In that case, you're renting for awhile (1-3 years, typically), with a portion of your rent credited toward your downpayment. During or at the end of the lease, you get your own financing and purchase the property. You use your rent credits to help with the downpayment.

Also, you mention that "my husband does not really have any credit." Get him started building up his credit. There are plenty of books and articles out there on that, but basically, he borrows a bit, even with a secured credit card, if necessary, and promptly pays it back. He keeps doing that, and that'll establish some credit for him.

Also, if you haven't done it already, check your credit reports. I wasn't sure if you had, or whether you were just guessing when you said that your credit is good but your husband's is not really there. If you were just guessing, you really should take a look at both of your credit reports.

Good luck.

Hi Nic! Fortunately, there are a ton of great programs here in Tallahassee for first time home buyers. The Tallahassee Lenders Consortium offers down payment assistance and great rates. I have a list of local lenders who specialize in first time buyers that I would be happy to share with you. Please send me an email at kim@ringtherivers.com or call me at 850-297-2255.

-Kim