Do I have to pay a down payment to buy a house?
I have about 15K credit card/consolidation debt to pay off plus a 25,000 school loan. I make 70K a year, can I afford to buy a house? I have owned before, and lost money on it. I can not put any money down because of my debt.
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Alterfemego said,
April 14, 2010 @ 3:59 am
While I’d like to think I had all the answers, I don’t Mainly because I have no way of knowing your complete financial picture, like a lender would. So it would be much better if you talked with someone who can give you a good answer, not just a 1/2 A’d answer.
lemonf said,
April 14, 2010 @ 4:48 am
no, they no longer do 100% financing due to the fact that is a big reason why we are in the state we are right now. People are more apt to walk away from their homes now because they have no financial interest in it. No banks will give a loan without at least 2.75% down (FHA) 5% for conventional.
chatsplas said,
April 14, 2010 @ 4:56 am
You’re not ready to buy now, but you can get there. You need to pay off your credit cards and be current on your school loans, and save up for a down payment. The days of 0 down are gone. Even FHA requires 3-5% down and 10% is better.
So you’re not able to buy now, and shouldn’t anyway, as you’d be overextending yourself. Pay down your credit card debt, paying 2-5 times minimums every month. Pay all bills in full and on time, building up your credit rating. Paying down your debt also increases your rating. Pay everything you can on your debts until the end of the year, then continue to pay them down. STOP using credit, reduce spending. SAVE a little every month, starting in January.
You can do it with perseverance, dedication and self-restraint.
Unknown said,
April 14, 2010 @ 5:27 am
No. You will need at least 20% in today’s market. You are not ready to buy. Pay off your debt first, house prices will fall even more.