[rhiannahunt]

Myhusband and I want to buy a home really soon. We have looked online at some homes in our area. Thing is... we don't have a down or money aside yet for closing costs. Would it be stupid to put a offer on a home... hoping to get the seller to pay for closing. We have also looked at manufactured homes. Where we live over 40% of our town live in manufactured homes. Would it be stupid to buy a manufactureed home rather than a regular home? Also I heard that a person need a full year of home owners insurance to put down when we buy the house. Is that true?

[LisaB4657]

People in your situation were able to buy homes with no money down for several years. That crashed along with the economy. Many of those people are now facing foreclosure.

If you can find a lender today who will loan you 100% of the value of the home it will be a miracle. You may find a seller who will cover all or a portion of your closing costs but yes, you will still have to pay for 1 year of homeowner's insurance in advance. In most places you will also have to pay at least 3 months of real estate taxes in advance. And if you're borrowing 100% then your monthly mortgage payments will have to include mortgage insurance payments as well.

Try to save up at least enough to put down 15%. That will give you a better chance at getting a loan.

[rhiannahunt]

People in your situation were able to buy homes with no money down for several years. That crashed along with the economy. Many of those people are now facing foreclosure.

If you can find a lender today who will loan you 100% of the value of the home it will be a miracle. You may find a seller who will cover all or a portion of your closing costs but yes, you will still have to pay for 1 year of homeowner's insurance in advance. In most places you will also have to pay at least 3 months of real estate taxes in advance. And if you're borrowing 100% then your monthly mortgage payments will have to include mortgage insurance payments as well.

Try to save up at least enough to put down 15%. That will give you a better chance at getting a loan.

So there really is no point unless we have some money. When you buy a house, do you put some of that on your tax return?

[Fr_Chuck]

If you have such little money that you don't have money for closing or money for a down payment you need to wait to buy anything, set up a budget, start saving money for this

[Cinderblocks]

My wife and I were in a situation like yours. The majority of our assets weren't liquid and with the stock market the way it is I wasn't about take a loan against my 401k. My mortgage broker found me a HUD loan for first time buyers which enabled me to get into the house for 2 1/2% down while adding my closing costs into the mortgage. All in all it cost me around 7k to get into my 220k home. If you can't scrape at least 10 grand together don't bother calling a realtor. There are many many unforseen costs with a new house from furnace cleanings to furniture to lawn mowers that add up QUICKLY.