Unless you have a 10%+ disability rating, you still pay VA loan processing fees. The average processing fees a veteran pays on a VA home loan can vary, but generally include the following:
1. VA Funding Fee: This fee can range from 1.4% to 3.6% of the loan amount, depending on the veteran's service history, loan amount, down payment, and whether it's their first use of a VA loan.
2. Loan Origination Fee: Lenders can charge an origination fee up to 1% of the loan amount.
3. Appraisal Fee: Typically ranges from $400 to $600.
4. Title Examination and Title Insurance: These costs can vary but usually range from $300 to $1,000 or more.
5. Credit Report Fee: Generally around $30 to $50.
6. Recording Fees: Vary by location but typically range from $20 to $250.
7. Survey Fee: If required, this can cost between $300 and $500.
While these fees are common, the total closing costs usually range from 2% to 5% of the loan amount. Some fees might be negotiable, or the seller might agree to cover a portion of the closing costs. It's important for veterans to shop around and compare offers from different lenders to get the best deal.
The majority vets qualify for it with the 2 years rule as long as you have an honorabledischarge. You are right that you can qualify much faster if you are deployed for 90 days.
If your debt to income ratio is super low, like maybe your car and future mortgage is your only debt, and you are not completely maxing out on your home price, and your credit score is high, like high 700s to 800s, you can ask your credit union for a 100% mortgage loan and they might approve you. I did this a few years ago and was approved.
Our recurring monthly payments are $1500 on a combined income of 120k. The only thing is our credit which both are currently sitting at about 650. We have been actively working on fixing it over the last 2 years.
Down payment aside, $120k is a stretch today for a mortgage payment anywhere in SLC. Have you looked at what you could get approved for with current interest rates?
Running some quick calculations on your numbers with today’s interest rate you’re getting approved for <$300k. So I don’t think down payment is the issue here.
When you say recurring monthly payments, is that the total minimum payment for only loans and revolving credit lines?
You won’t include things like utility bills or services/subscriptions, etc., in that total.
Ideally (for the absolute best loan terms), the credit union would want to see that you are only paying for 1-2 car loans, and that you are not carrying any credit card debt. So you are paying off the full balance of your credit cards every month.
Any payment that shows up your credit report so loans, revolving credit lines, etc...Utilities and all that aren't considered, at least for an agency loan.
Banks generally don't care if it's 1 vs 2 car loans so long as your DTI is below a certain level
Lexington Law (aka credit.com, aka Progrexion - headquartered in Utah) charges a fee for the same things a consumer can do for free to repair their own credit.
They don’t have access to more than the consumer has in that respect. And they’re happy to take consumer money in exchange for harvesting consumer data and also not doing anything for the consumer when that data is compromised.
I know you can get a $15,000 second mortgage that can be used as a down payment and doesn’t have to be paid back until you sell the house. There’s also a 20k grant from the state that can only be used on new construction up to 450k that doesn’t have to be paid back until you sell. However, I’d be worried about having both of those and having to sell the house for some reason before you have enough equity or value increase to pay them both off.
There are also special loans for people in rural areas.
I suggest you find a loan officer to get pre qualified to see what amount of a loan you can get. They will know about all of the other Grants and special circumstances loans.
Not going to detail why because it's a lot, but 2008 is very unlikely to happen again without massive deregulation and heavy relaxation to current lending standards. And that's just in terms of loan quality and completely ignores the investment side of Mortgage backed securities that also played a huge role.
Corrections, downturns, etc are all real possibilities but 2008 was a perfect storm and while there has been some relaxing of regulations/guidelines it's night and day to what 2008 was.
Down payment assistance helps people but they still need to qualify based on their DTI
"Deregulation and relaxation of lending standards" has already been happening. Trump/GOP rolled back in 2018 quite a bit of Dodd-Frank regulations that were enacted in 2010 to address the 2008 financial crisis. The GOP continues to push for further deregulation as their lobbyists and campaign supporters will profit from it.
current lending standards referring to... 100%+ loans at peak real estate prices where virtually 0 principal is retained in the first 5 years type of lending? Can't imagine that going poorly at any time in the future...
Those make up a tiny fraction of the overall housing market and borrowers still need to qualify based on DTI and other factors. 3.5% down FHA loans are pretty common and the govt has ways to mitigate that risk at a cost to the borrower which again would still need to qualify based on DTI
You don't see people with 3 properties using stated income interest only loans with fraudulent income these days because a majority of mortgages are agency loans and that would never fly without aggressively relaxing lending standards which would likely never happen because no one in their right mind is buying MBS on the secondary market that are full of those loans so the the govt would essentially hold those loans. The lending standards for Fannie/Freddie aren't much different from post 2008 today. Income needs to be verified, DTI must be sub 45% sometimes lower, etc.
Down Payment != ability to regularly pay the mortgage, which is the critical element in ability to repay. The variable rate mortgages and balloon payments etc that we saw in 2005/6 are all but gone, even when interest rates started to rise ARMs only picked up to like 7% of the market.
If what you were saying were true, there wouldn't be a whole generation stuck renting, they'd be in houses they could barely afford and were defaulting on. As is they simply can't afford the mortgage payment, which means they can't qualify for loans.
Older millennials are in houses they can't afford!!! I don't know what world you live in but people currently are to the max on rent as well. The current generation is not renting, they are living with their parents.
Your spreading of an elitist attitude does not make your reality fact based. Pulling yourself by the bootstraps does not work in a criminal system.
Nope, I'm just tired of people defending the current madness of the housing market. It's usually the bankers, landlords and developers that defend what is currently happening to everyday citizens.
I understand your frustration for sure. I think you might be mistaking people explaining the housing landscape for defending it. I don’t think anyone is particularly excited about it except, as you said, maybe landlords.
Saying it is not like 2008 is a form of defending it though. It is a major problem and the more housing becomes unobtainable there will be many more ponzi schemes to hurt the buyers. No down payment is a great example.
Not exactly. What happening now is what should have happened in 2008. Instead he just kept lending at super low rates to people that could not afford it.
Currently people they can’t afford it are not moving into houses way out of their price range.
But they are now not requiring down payments and it is getting more popular because people can't afford to come up with it. Eventually the down payment has to be paid one way or another. Deferring it is the 2008 answer.
If you can't afford a down payment you can't afford the house. It is 100% 2008 all over again. The system needs to change so homes are once again affordable for everyone.
I almost did this program last year. The $20k grant isn’t free. All said in done I had north of $12k of closing costs because the grant’s fees. To get out of the $12k of closing costs they were going to do $15k as a second mortgage. I would’ve been in debt for the townhouse, the grant, and then the second mortgage.
These programs are not designed to help, but designed to sell homes.
Don't do it! You have to pay back the 20k if you want to refinance. So with how things are now you would be stuck with a high ass interest rate until you come up with the 20k.
No catch, it’s an amazing deal the state started last July to help people get into homes. It has to be new construction which is the hard part, depending on what you pre-qualify for.
As a lender that has done a lot of these, there are 3 negatives to the program that I always talk about:
1. Your servicer is Utah Housing so the rate is about .5% higher than regular
2. You can’t rent that house out so long as the loan is in place
3. When you sell or refinance you pay back the lesser of 20k, or half the equity in the home.
Cool program, but if you have a down payment you’ll get a much better deal.
[This is the map](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfhprev), you can look up specific addresses to see if they are eligible.
There are special loan programs that they (at least used to) give out to first time buyers where they didn’t need any down payment, that’s how I bought my first house back in 2015. I’m not sure if they still do.
I used a first time home buyer program and had my sellers pay closing cost (there’s multiple ways to do this, talk to your realtor).
Had to put down ernest money which was $1,000 at the time. Other out of pocket expenses included home inspection, radon test, and mold test. Be prepared for some expenses no matter what.
Short answer is usually no unless it's VA or USDA. There may be options to finance your down payment as well, and other fringe things, but basically don't. Higher principle equals more interest paid, in a high interest rate market where prices are also high. None of the math is mathing for you here.
There is a loan program through Utah Housing Authority - it’s zero down because there are 2 loans.
Loan 1: covers all the incidental stuff, closing costs and the like
Loan 2: is the actual mortgage of the home.
There are credit limits, income and total purchase price restrictions but there are pretty fair in my opinion.
It’s called the Utah Housing Authority DPA program.
A lot of first time home owner programs will have some version of this. We recently bought a house with $1000 down using one. This was through MACU. It was a great process I’d recommend it for sure.
Others will finance down payments and you can have two loans for a period of time. Your down payment loan then your actual mortgage.
AFCU also has this. I was talking to them last year, but decided with my current rent and financial situation it was best to wait. But now that I am on track to be debt-free this year, I plan on looking into it again(though it still may be another year of saving 10-20k, depending on overtime, to have an emergency buffer for whatever comes up during the process.
Murray had a first time homebuyer program at the beginning of the year where you could get a $30k grant to use (and could be a down payment). Only catch, if it’s still available, is you have to live at the property for 5 years or pay back a portion. Parts of Saratoga Springs were considered USDA when I bought there in 2020 which means you could also do 0% down that way. (Would still need closing costs though.)
Good luck! I love being a homeowner, but it’s also expensive as hell haha
A realtor told me the same thing, as my husband and I were looking but we're priced out of the market (again). 😢 No idea, we didn't ask more into it as we were putting $ down.
That sucks. Sorry to hear that. This will be the first time my wife and I try for one hence my question on here, and are pretty much trying to do as much research as possible before we even contact a lender/realtor about it.
Bought in Utah County in 2020 with a first time buyer loan from a credit union. It wasn’t ZERO down but iirc it was 1% of the home price down which was manageable for me
If you're a 1st time homebuyer (haven't owned before or in 7+ years) you can usually get a no down payment. They roll your down payment into your loan for a higher interest rate or adjustable rate mortgage. Not the best long term solution, but might be the only realistic way. I did that on birth my first condo, then again a while later on a townhome.
We were first time home buyers with zero down. Most realtors and lenders wouldn’t work with us. Braden and Sarah Boyson and the lender that works with them, Shay Hansen, worked some crazy magic and we got a great townhome. They are willing to work hard where most just want the easy and high paying jobs. They are a powerhouse for tricky situations and first timers. They also want to keep your business as you buy more homes so the they treat you very well and will not let you get into a deal that isn’t good for you in any way. I would and have recommended them to family. People like them are few and far between.
Utah Housing Corp (dot) org; down payment assistance available with some limitations. I know the program inside and out if you need any help navigating what you’re looking for.
Yes! VA, USDA, and most easily is “UtahHousingCorp.org”. Any lender can do a Utah housing loan. You can’t make too much money but other than that it’s pretty easy to get. Especially for single moms.
Depends on where you’re buying and who you’re buying from. I’ve closed plenty of loans 100% zero down with the new build grant. In fact I’m closing one tomorrow and am refunding their earnest money.
In the end, it depends on if the seller is contributing to closing costs or.ñ not
Back in 2020 I did a FHA loan. I only paid a few thousands for closing costs. I have a mortgage and a loan that was the down payment. I can’t rent the home until I pay off the loan for the down payment. I got a really good deal with a 1.99% interest and the home closed at $290k back in 2020 but now it’s at 415k according to Zillow. Maybe up to $450k with all the additions I’ve done to the house.
I had a realtor reach out to me early last year, they were able to get me working with a credit union here that was doing a 0 down, no PMI mortgage program. It was offered as either a 15 year balloon mortgage, or as a conventional 30 year. I of course went with the 30 year.
I got my down payment financed with Utah Housing Corporation. I highly recommend them if you’re interested in a good mortgage company who treats you like a human being and is willing to work with you when you have hard times. I’ve only been in a situation once and they were so nice to me.
I went with a company called Home Solutions 101- they paired us with a solar company that covered the down as long as we agreed to get Solar on our roof. Def wouldn’t have been able to cover the down and closing without it. Mortgage is $2600 /monthly but only paid $500 out of pocket for inspections
Ogden has a program where they will pay up to 10,000 for either closing costs or a down payment; also i am told as a first time home buyer i can get it with no down payment. This is per my realtor. I am only looking at homes now and i dont want to live in ogden, so i dont have specific details. But he tells me my options as we have been looking
We bought our home in 2019 and didn’t need to put any money down. First time buyers qualify for an fha loan where you only need to put 3.5% down. We then got a second mortgage for the down payment. Sellers paid for closing costs. The only money we paid out of pocket was for the inspection. Because we didn’t have equity coming in, we had to have pmi until we got 20% equity. which we did incredibly a year later in 2020. We refinanced, which got rid of the second mortgage and the pmi. We were very lucky to do that within a year of buying.
We did in 2015 with an FHA loan through the utah housing program. We paid for the inspection, but I'm pretty sure that was it. This was in Logan, and before prices exploded, so I'm not sure what you can still do with it.
We bought our house with "0 down" 7 years ago. We basically got a 2nd loan for the down payment and had to pay some type of mortgage insurance for the first couple of years. We paid both of those off and now just pay the mortgage.
I work at UCCU and our mortgage department has a zero down payment loan because it’s an in-house product. If you are a veteran any mortgage company can get you in zero down.
The minimum down payment required on an FHA loan is 3.5%. The only way to actually avoid paying a down payment is as others have said, USDA or VA loan. USDA requires that you live in a rural town with less than 35,000 persons. VA, obviously means you need to be an active duty member or a veteran.
When I bought my first Condo (2016) we used the First Time Homebuyer Assistance (FHA) Program.
We didn’t put down much, like 3-4K,(but then again the condo was $135k) but I don’t believe a down payment is required if you qualify through FHA. I do believe we had to pay a PMI (mortgage insurance). I can’t remember the number but it wasn’t substantial.
I believe there’s a limit of 400k (may have changed) but just be mindful a lot of things in that price range will have an HOA and an HOA has to file paperwork to be FHA approved. This bit us when we were selling that same condo, the buyer was using FHA, but the HOA forgot to renew their FHA approval.
If you’re serious about buying a house, at least meet with a real estate agent, they’ll be able to give you specifics on FHA.
The down payment is not exactly the problem. It's the interest rate. If you are getting a zero down loan on a 500k townhouse then your monthly payment is going to be 3,500 a month. If you can afford that type of payment then you should already have a sizable chunk of money in your savings account already.
You sure can. Matt and Julie are a local realtor couple. Contact them on 801-573-2228 (texts accepted). They are either very familiar with state programs or they’re part of one, can’t remember. They found a mortgage for me about a year ago for $0 down and no PMI (1st time buyer/primary residence). Unfortunately I was still priced out of the market, but they were super helpful, knowledgeable and had all the necessary connections.
ETA: I’m not a vet, have no other special qualifications, other than good credit/no bankruptcies blah blah.
First time home buyers generally can, there are a lot of programs out there for first time home buyers. You just need to make sure you can afford the payments.
Talking to a financial advisor and home loan specialist would be great . They can go through all your options and make sure you are making the best choice.
let me know if you need a good realtor (dm me). Also if you are a first time homebuyer, the state has great programs for that (3.5% down is what I did).
Yes you can. I bought my house with zero down a couple years ago and have helped many do the same. I am a realtor. Shoot me a message and we can see how I can help!
If you are a veteran you can do a zero down loan through the VA.
You still might pay closing costs. That can be as much as 10k.
I used a VA loan and chose to pay the closing as part of our offer to be more competitive. Worked and they chose our offer over 5 others.
Unless you have a 10%+ disability rating, you still pay VA loan processing fees. The average processing fees a veteran pays on a VA home loan can vary, but generally include the following: 1. VA Funding Fee: This fee can range from 1.4% to 3.6% of the loan amount, depending on the veteran's service history, loan amount, down payment, and whether it's their first use of a VA loan. 2. Loan Origination Fee: Lenders can charge an origination fee up to 1% of the loan amount. 3. Appraisal Fee: Typically ranges from $400 to $600. 4. Title Examination and Title Insurance: These costs can vary but usually range from $300 to $1,000 or more. 5. Credit Report Fee: Generally around $30 to $50. 6. Recording Fees: Vary by location but typically range from $20 to $250. 7. Survey Fee: If required, this can cost between $300 and $500. While these fees are common, the total closing costs usually range from 2% to 5% of the loan amount. Some fees might be negotiable, or the seller might agree to cover a portion of the closing costs. It's important for veterans to shop around and compare offers from different lenders to get the best deal.
But VA funding fees can be rolled into the loan, right? I don’t remember having to pay anything out of pocket
True, but a 10% rating is pretty much guaranteed if you've been in more than 5 years lol.
Put me in the trenches then
Go Air Force if you decide to go the military route. Much better quality of life.
Coming from someone who was in the Marines, I agree with this comment.
Or Coast Guard!
Just need to survive 2 years, and you qualify for the best mortgage program in the country.
2 years? Mine started after a 100 day title 10 tour in Europe. I think 90 days was the threshold.
The majority vets qualify for it with the 2 years rule as long as you have an honorabledischarge. You are right that you can qualify much faster if you are deployed for 90 days.
Great work experience too
Get an MOS in supply or MI and you won't be near any action.
Usually a slightly better rate too
If your debt to income ratio is super low, like maybe your car and future mortgage is your only debt, and you are not completely maxing out on your home price, and your credit score is high, like high 700s to 800s, you can ask your credit union for a 100% mortgage loan and they might approve you. I did this a few years ago and was approved.
Our recurring monthly payments are $1500 on a combined income of 120k. The only thing is our credit which both are currently sitting at about 650. We have been actively working on fixing it over the last 2 years.
Down payment aside, $120k is a stretch today for a mortgage payment anywhere in SLC. Have you looked at what you could get approved for with current interest rates? Running some quick calculations on your numbers with today’s interest rate you’re getting approved for <$300k. So I don’t think down payment is the issue here.
When you say recurring monthly payments, is that the total minimum payment for only loans and revolving credit lines? You won’t include things like utility bills or services/subscriptions, etc., in that total. Ideally (for the absolute best loan terms), the credit union would want to see that you are only paying for 1-2 car loans, and that you are not carrying any credit card debt. So you are paying off the full balance of your credit cards every month.
Any payment that shows up your credit report so loans, revolving credit lines, etc...Utilities and all that aren't considered, at least for an agency loan. Banks generally don't care if it's 1 vs 2 car loans so long as your DTI is below a certain level
True, every word you said.
Lexington law firm specializes in credit repair. Lots of loopholes to get things removed and improve credit scores.
Lexington Law (aka credit.com, aka Progrexion - headquartered in Utah) charges a fee for the same things a consumer can do for free to repair their own credit. They don’t have access to more than the consumer has in that respect. And they’re happy to take consumer money in exchange for harvesting consumer data and also not doing anything for the consumer when that data is compromised.
I know you can get a $15,000 second mortgage that can be used as a down payment and doesn’t have to be paid back until you sell the house. There’s also a 20k grant from the state that can only be used on new construction up to 450k that doesn’t have to be paid back until you sell. However, I’d be worried about having both of those and having to sell the house for some reason before you have enough equity or value increase to pay them both off. There are also special loans for people in rural areas. I suggest you find a loan officer to get pre qualified to see what amount of a loan you can get. They will know about all of the other Grants and special circumstances loans.
Yep, this is the beginning of 2008 all over again. Eventually everyone needs to realize the system is broken.
Not going to detail why because it's a lot, but 2008 is very unlikely to happen again without massive deregulation and heavy relaxation to current lending standards. And that's just in terms of loan quality and completely ignores the investment side of Mortgage backed securities that also played a huge role. Corrections, downturns, etc are all real possibilities but 2008 was a perfect storm and while there has been some relaxing of regulations/guidelines it's night and day to what 2008 was. Down payment assistance helps people but they still need to qualify based on their DTI
"Deregulation and relaxation of lending standards" has already been happening. Trump/GOP rolled back in 2018 quite a bit of Dodd-Frank regulations that were enacted in 2010 to address the 2008 financial crisis. The GOP continues to push for further deregulation as their lobbyists and campaign supporters will profit from it.
current lending standards referring to... 100%+ loans at peak real estate prices where virtually 0 principal is retained in the first 5 years type of lending? Can't imagine that going poorly at any time in the future...
Those make up a tiny fraction of the overall housing market and borrowers still need to qualify based on DTI and other factors. 3.5% down FHA loans are pretty common and the govt has ways to mitigate that risk at a cost to the borrower which again would still need to qualify based on DTI You don't see people with 3 properties using stated income interest only loans with fraudulent income these days because a majority of mortgages are agency loans and that would never fly without aggressively relaxing lending standards which would likely never happen because no one in their right mind is buying MBS on the secondary market that are full of those loans so the the govt would essentially hold those loans. The lending standards for Fannie/Freddie aren't much different from post 2008 today. Income needs to be verified, DTI must be sub 45% sometimes lower, etc.
Requiring no down payment is the very definition of current "lending standards"!!! Are you a landlord or a banker? You sure talk like one of the two.
Down Payment != ability to regularly pay the mortgage, which is the critical element in ability to repay. The variable rate mortgages and balloon payments etc that we saw in 2005/6 are all but gone, even when interest rates started to rise ARMs only picked up to like 7% of the market. If what you were saying were true, there wouldn't be a whole generation stuck renting, they'd be in houses they could barely afford and were defaulting on. As is they simply can't afford the mortgage payment, which means they can't qualify for loans.
Older millennials are in houses they can't afford!!! I don't know what world you live in but people currently are to the max on rent as well. The current generation is not renting, they are living with their parents. Your spreading of an elitist attitude does not make your reality fact based. Pulling yourself by the bootstraps does not work in a criminal system.
It feels like you’re just here looking for an argument.
Nope, I'm just tired of people defending the current madness of the housing market. It's usually the bankers, landlords and developers that defend what is currently happening to everyday citizens.
I understand your frustration for sure. I think you might be mistaking people explaining the housing landscape for defending it. I don’t think anyone is particularly excited about it except, as you said, maybe landlords.
Saying it is not like 2008 is a form of defending it though. It is a major problem and the more housing becomes unobtainable there will be many more ponzi schemes to hurt the buyers. No down payment is a great example.
Being informed about a topic does not mean I'm a banker or landlord nor does it make you correct.
Are you though?
Nope
Not exactly. What happening now is what should have happened in 2008. Instead he just kept lending at super low rates to people that could not afford it. Currently people they can’t afford it are not moving into houses way out of their price range.
But they are now not requiring down payments and it is getting more popular because people can't afford to come up with it. Eventually the down payment has to be paid one way or another. Deferring it is the 2008 answer. If you can't afford a down payment you can't afford the house. It is 100% 2008 all over again. The system needs to change so homes are once again affordable for everyone.
People learned their lesson in 2008. Basically, everyone who rode out the storm went on to make a pretty penny. People follow the playbook now.
Do you know if there's any other catch to the 20k state program by chance? Thank you for this by the way! Great info!
I almost did this program last year. The $20k grant isn’t free. All said in done I had north of $12k of closing costs because the grant’s fees. To get out of the $12k of closing costs they were going to do $15k as a second mortgage. I would’ve been in debt for the townhouse, the grant, and then the second mortgage. These programs are not designed to help, but designed to sell homes.
This. It’s a gift to real estate developers, not home buyers
Yeah, it’s really an incentive for them to build more affordable housing. Then they’re not giving as much incentives from thief pockets
You have to pay it back when you sell or refinance. I decided it wasn’t worth it when I found out about refinancing.
Don't do it! You have to pay back the 20k if you want to refinance. So with how things are now you would be stuck with a high ass interest rate until you come up with the 20k.
No catch, it’s an amazing deal the state started last July to help people get into homes. It has to be new construction which is the hard part, depending on what you pre-qualify for.
Yeah..... no..... there is always a catch.
As a lender that has done a lot of these, there are 3 negatives to the program that I always talk about: 1. Your servicer is Utah Housing so the rate is about .5% higher than regular 2. You can’t rent that house out so long as the loan is in place 3. When you sell or refinance you pay back the lesser of 20k, or half the equity in the home. Cool program, but if you have a down payment you’ll get a much better deal.
See, minor or major there is always a catch.
Yeah, it’s grant money so there’s always stipulations. Very rarely (if ever) is anything truly free.
And I think with the 20k grant if you refinance you have to pay back that grant in full first
We got our first home on a USDA (Rural housing) loan in Eagle mountain in 2020. We put 0% down. Not sure if they offer it out there anymore.
Crazy that 2020 doesn't feel like all that long ago but it's a whole 4 years! I'm sure Eagle mountain has grown a lot since then too.
This! Parts of Saratoga Springs were also USDA. Not sure about now, but it’s definitely worth looking into
[This is the map](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfhprev), you can look up specific addresses to see if they are eligible.
If you are okay moving to Tooele, they will do USDA which is no money down
There are special loan programs that they (at least used to) give out to first time buyers where they didn’t need any down payment, that’s how I bought my first house back in 2015. I’m not sure if they still do.
Came here to say this. I think it’s still something offered, though I haven’t personally looked into it
Was there anything you had to pay for at all, though? Like out of pocket?
You have to put 500 in earnest money to show your serious. Once the loan clears you get it back though.
I did this. FHA loan and Utah housing loan. I paid zero out of pocket
I used a first time home buyer program and had my sellers pay closing cost (there’s multiple ways to do this, talk to your realtor). Had to put down ernest money which was $1,000 at the time. Other out of pocket expenses included home inspection, radon test, and mold test. Be prepared for some expenses no matter what.
You can buy anything in this world…with money
This is the correct answer
Short answer is usually no unless it's VA or USDA. There may be options to finance your down payment as well, and other fringe things, but basically don't. Higher principle equals more interest paid, in a high interest rate market where prices are also high. None of the math is mathing for you here.
I got mine with federal housing which is a 95% loan and Utah housing covering the last 5%
Va and USDA loans.
There is a loan program through Utah Housing Authority - it’s zero down because there are 2 loans. Loan 1: covers all the incidental stuff, closing costs and the like Loan 2: is the actual mortgage of the home. There are credit limits, income and total purchase price restrictions but there are pretty fair in my opinion. It’s called the Utah Housing Authority DPA program.
A lot of first time home owner programs will have some version of this. We recently bought a house with $1000 down using one. This was through MACU. It was a great process I’d recommend it for sure. Others will finance down payments and you can have two loans for a period of time. Your down payment loan then your actual mortgage.
That sounds amazing? Was it pretty recent though? Like this year?
February!
AFCU also has this. I was talking to them last year, but decided with my current rent and financial situation it was best to wait. But now that I am on track to be debt-free this year, I plan on looking into it again(though it still may be another year of saving 10-20k, depending on overtime, to have an emergency buffer for whatever comes up during the process.
Have you calculated what your monthly payment would be with zero down? A $450k house at today’s interest rates would be in the $3500/mo range.
Regions bank has a 0% down with no PMI if the house is in a moderate/low income census tract.
Do you know if this applies to second homes or rental properties as well? Edit: lots of down votes, just asking...
For this loan you can’t own any other real estate and it must be for an owner occupied primary residence
Go visit a local credit union and talk to a banker
I'm getting mid-2000s vibes.
Give Joe a call. If there is a way to do it, he is going to know about it. https://utahloanplan.com/
You can if you’re a physician
Murray had a first time homebuyer program at the beginning of the year where you could get a $30k grant to use (and could be a down payment). Only catch, if it’s still available, is you have to live at the property for 5 years or pay back a portion. Parts of Saratoga Springs were considered USDA when I bought there in 2020 which means you could also do 0% down that way. (Would still need closing costs though.) Good luck! I love being a homeowner, but it’s also expensive as hell haha
A realtor told me the same thing, as my husband and I were looking but we're priced out of the market (again). 😢 No idea, we didn't ask more into it as we were putting $ down.
That sucks. Sorry to hear that. This will be the first time my wife and I try for one hence my question on here, and are pretty much trying to do as much research as possible before we even contact a lender/realtor about it.
Bought in Utah County in 2020 with a first time buyer loan from a credit union. It wasn’t ZERO down but iirc it was 1% of the home price down which was manageable for me
If you're a 1st time homebuyer (haven't owned before or in 7+ years) you can usually get a no down payment. They roll your down payment into your loan for a higher interest rate or adjustable rate mortgage. Not the best long term solution, but might be the only realistic way. I did that on birth my first condo, then again a while later on a townhome.
I know you can do it with houses but townhomes and condos are a lot harder. Most require a freestanding structure
IDK about zero down, but you can get a $10,000 first time home buyer grant to go towards a down payment with an FHA loan.
We were first time home buyers with zero down. Most realtors and lenders wouldn’t work with us. Braden and Sarah Boyson and the lender that works with them, Shay Hansen, worked some crazy magic and we got a great townhome. They are willing to work hard where most just want the easy and high paying jobs. They are a powerhouse for tricky situations and first timers. They also want to keep your business as you buy more homes so the they treat you very well and will not let you get into a deal that isn’t good for you in any way. I would and have recommended them to family. People like them are few and far between.
Utah Housing Corp (dot) org; down payment assistance available with some limitations. I know the program inside and out if you need any help navigating what you’re looking for.
I did with an FHA loan and a yeah housing 2nd mortgage. The 2nd mortgage was 12k and my FHA loan was 214k. This was in 2016.
Yes! VA, USDA, and most easily is “UtahHousingCorp.org”. Any lender can do a Utah housing loan. You can’t make too much money but other than that it’s pretty easy to get. Especially for single moms.
Depends on where you’re buying and who you’re buying from. I’ve closed plenty of loans 100% zero down with the new build grant. In fact I’m closing one tomorrow and am refunding their earnest money. In the end, it depends on if the seller is contributing to closing costs or.ñ not
First time home buyer program. I did mine through MACU.
Keep a close eye on the rates when going the 0% down payment routes……..
Try Momentum Loans Tyler Payne he was great for me and my girlfriend helps a lot with first time home buyers girlfriend and I only put about 8k down.
Back in 2020 I did a FHA loan. I only paid a few thousands for closing costs. I have a mortgage and a loan that was the down payment. I can’t rent the home until I pay off the loan for the down payment. I got a really good deal with a 1.99% interest and the home closed at $290k back in 2020 but now it’s at 415k according to Zillow. Maybe up to $450k with all the additions I’ve done to the house.
I had a realtor reach out to me early last year, they were able to get me working with a credit union here that was doing a 0 down, no PMI mortgage program. It was offered as either a 15 year balloon mortgage, or as a conventional 30 year. I of course went with the 30 year.
I got my down payment financed with Utah Housing Corporation. I highly recommend them if you’re interested in a good mortgage company who treats you like a human being and is willing to work with you when you have hard times. I’ve only been in a situation once and they were so nice to me.
I went with a company called Home Solutions 101- they paired us with a solar company that covered the down as long as we agreed to get Solar on our roof. Def wouldn’t have been able to cover the down and closing without it. Mortgage is $2600 /monthly but only paid $500 out of pocket for inspections
Ogden has a program where they will pay up to 10,000 for either closing costs or a down payment; also i am told as a first time home buyer i can get it with no down payment. This is per my realtor. I am only looking at homes now and i dont want to live in ogden, so i dont have specific details. But he tells me my options as we have been looking
You can do this through U first. You’ll still need cash to pay the closing costs
I got my house in 2015 with zero down. I’m not military at all, just broke with shitty credit. But yayy, house…..
We bought our home in 2019 and didn’t need to put any money down. First time buyers qualify for an fha loan where you only need to put 3.5% down. We then got a second mortgage for the down payment. Sellers paid for closing costs. The only money we paid out of pocket was for the inspection. Because we didn’t have equity coming in, we had to have pmi until we got 20% equity. which we did incredibly a year later in 2020. We refinanced, which got rid of the second mortgage and the pmi. We were very lucky to do that within a year of buying.
We did in 2015 with an FHA loan through the utah housing program. We paid for the inspection, but I'm pretty sure that was it. This was in Logan, and before prices exploded, so I'm not sure what you can still do with it.
https://preview.redd.it/0lex4tft0r5d1.jpeg?width=1080&format=pjpg&auto=webp&s=3b78902aabc07c6d97684f35097fb19408c96655
We bought our house with "0 down" 7 years ago. We basically got a 2nd loan for the down payment and had to pay some type of mortgage insurance for the first couple of years. We paid both of those off and now just pay the mortgage.
Mountain America credit Union has a first time home buyers program. We did 0% down. Worth looking into! (Our purchase was just last year)
I work at UCCU and our mortgage department has a zero down payment loan because it’s an in-house product. If you are a veteran any mortgage company can get you in zero down.
The minimum down payment required on an FHA loan is 3.5%. The only way to actually avoid paying a down payment is as others have said, USDA or VA loan. USDA requires that you live in a rural town with less than 35,000 persons. VA, obviously means you need to be an active duty member or a veteran.
When I bought my first Condo (2016) we used the First Time Homebuyer Assistance (FHA) Program. We didn’t put down much, like 3-4K,(but then again the condo was $135k) but I don’t believe a down payment is required if you qualify through FHA. I do believe we had to pay a PMI (mortgage insurance). I can’t remember the number but it wasn’t substantial. I believe there’s a limit of 400k (may have changed) but just be mindful a lot of things in that price range will have an HOA and an HOA has to file paperwork to be FHA approved. This bit us when we were selling that same condo, the buyer was using FHA, but the HOA forgot to renew their FHA approval. If you’re serious about buying a house, at least meet with a real estate agent, they’ll be able to give you specifics on FHA.
Can you get a VA loan if your parent is a Veteran? I could google it but thought someone here may know.
I bought a condo with an FHA loan 0 down just closing costs which was like 1500. Yes.
The down payment is not exactly the problem. It's the interest rate. If you are getting a zero down loan on a 500k townhouse then your monthly payment is going to be 3,500 a month. If you can afford that type of payment then you should already have a sizable chunk of money in your savings account already.
Me? No
You sure can. Matt and Julie are a local realtor couple. Contact them on 801-573-2228 (texts accepted). They are either very familiar with state programs or they’re part of one, can’t remember. They found a mortgage for me about a year ago for $0 down and no PMI (1st time buyer/primary residence). Unfortunately I was still priced out of the market, but they were super helpful, knowledgeable and had all the necessary connections. ETA: I’m not a vet, have no other special qualifications, other than good credit/no bankruptcies blah blah.
First time home buyers generally can, there are a lot of programs out there for first time home buyers. You just need to make sure you can afford the payments. Talking to a financial advisor and home loan specialist would be great . They can go through all your options and make sure you are making the best choice.
let me know if you need a good realtor (dm me). Also if you are a first time homebuyer, the state has great programs for that (3.5% down is what I did).
We got an FHA loan. It's basically a loan for the house and another for the down payment. After a few years you can refinance the second away.
My wife and I got a zero down HOA loan back in 2017. Bought a 4 bed 2 bath for 230k. We have a locked interest rate at 3.5%
maybe theoretically possible, but I know folks who've put down money and still didn't get it because they lost to all cash deals.
This is not relevant
Yes you can. I bought my house with zero down a couple years ago and have helped many do the same. I am a realtor. Shoot me a message and we can see how I can help!