Finally can buy a home, Help?! (Long)
Question: After moving from NY(high cost, low wages), to OH(good wages, and fairly low cost), after 4 years, we are finally in a position to buy a house. Bad credit reports repaired, old debts paid, no current high cost expenses, except for our vehicles, and one is almost paid off, and the other we make extra payments to lower the actual payment.We have no savings to speak of, but could come up with a small down payment. We want to find something that requires no money down. We have not a clue where to start. Should we just try to get prequalified from realtors and our banks? The rents for a family of 5 plus pets is as much if not more than a house payment. Any ideas or actual experiences would help.
Answer: If you qualify for FHA, go for it. If not:
Your best bet for almost no money down is probably some type of lease-to-purchase arrangement, or what’s commonly called a land contract. In your circumstance I would look at rental houses and ask the landlords if they are interested in selling. You might be surprised at how many of them are, especially to someone with decent credit. Under a standard land contract you’d make a small down payment and you’d usually pay higher than market rate interest. Also if you default at any time on the payments you’d lose everything you’d paid–the landlord would get the property back. I realize this sounds like a less than great deal, but with a tiny or no down payment it may be the best you can expect.
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