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We are trying to get an FHA loan that requires 3.5% downpayment. We dont have enough savings to cover that but we do want to get our own house because it will be cheaper than paying our rent now.

Any advise will be most appreciated.

thanks everyone!
real estate guy.. we are a first time home buyer. Is there any other program for us?

10 Thoughts on can we add the downpayment to our mortgage loan?
  1. Reply
    May 4, 2011 at 3:02 am

    No. 3.5% is the minimum. If you don’t have that plus closing costs, you’re not ready to buy.

  2. Reply
    May 4, 2011 at 3:31 am

    No you can not. FHA not only requires the minimum downpayment, they require that you provide proof of where the funds come from. (This prevents people from “borrowing” the down payment from someone else.

  3. Reply
    May 4, 2011 at 4:22 am

    No. You must make the down payment and closing costs yourself.

    If you can’t afford the down-payment….your not ready to buy.

  4. Reply
    May 4, 2011 at 4:30 am

    Can’t do that

  5. Reply
    May 4, 2011 at 4:50 am

    No you can not

  6. Reply
    real estate guy
    May 4, 2011 at 5:22 am

    no. The 3.5% has to be your own money. Try USDA, this is a 100% loan.

    However, with FHA, the seller can pay your closing or even the lender (with a higher rate). This way, the money that you would use towards closing can now be used for the downpayment.

  7. Reply
    educated mom
    May 4, 2011 at 6:09 am

    No, it will not be cheaper than renting. There are other costs to home ownership than just the monthly payment. I see this over and over again. That’s why so many people end up in trouble. You need to save up at least 20% with an additional 5% for emergency spending.
    When you buy a home you have home insurance, property taxes and routine home maintenance that can be very costly. A new roof: 6-10,000. A new furnace 3-6,000. the list goes on and on. If you want to increase your savings go to your bank and talk to someone about different saving plans. Put a plan together that makes sense and what you can handle, financially. That’s the key to happy home ownership.

  8. Reply
    Cesaria Barbarossa
    May 4, 2011 at 6:13 am

    I don’t think so. I have heard of 103% financing where they might cover your downpayment, but those are pretty rare. You might can borrow against your 401K or other retirement plan. In some instances, you can get down payment assistance if you buy a home in certain cities but you will need to contact your state’s website for that information.

  9. Reply
    May 4, 2011 at 6:24 am

    FHA very seldom will offer a 100% loan program which you are requesting since you do not have enough savings to make the necessary down payment which in FHA it could be as low as 3.5% for a first time home buyer.

    You can not borrower the money for the down payment from anyone.

    You might get the down payment from a charity, family members, a church organization or other non-profit organizations.

    Whomever you get the down payment from will have to prove with paperwork supplied by your lender that they have the funds in the bank and are giving this down payment as a gift.

    You can not work out a side deal or under the table deal with the person giving you the gift.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  10. Reply
    May 4, 2011 at 6:27 am

    O.K. Here is the real answer.

    The FHA requires a down payment of at least 3.5% which makes the maximum LTV (Loan to Value) 96.5%. The 3.5% down payment can come from several sources other than the borrower. An example might be a gift from a relative (this requires a gift letter and proof from the relative that they have indeed transferred the money to you from an account that they own). There are other down payment assistance programs available but the end result is that you can achieve 100% financing with an FHA loan.

    Additionally, the FHA guidelines state the seller can provide up to 6% contributions to pay for among other things closing cost items but not the required 3.5% down payment. The combination of the aforementioned could result in a buyer moving into a newly purchased home with virtually no money out of pocket.

    Now is this the best course of action for you? I just don’t know the answer to that but do agree that having some reserve cash available and having made some cash contribution towards the down payment etc… from your own funds helps to insure that you have a vested interest in making the mortgage payments on time and thus not defaulting.

    The following link will take you to an online version of the FHA handbook where the answers to most of your questions can be found.

    Best of luck

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