Can I Buy a Home With No Money Down

Reader Question: Is it possible for a person to get a mortgage loan and buy a home making 34,000 a year, no money down and 10,000 for closing?

It's possible, but how likely it is will depend on (A) the size of the loan and (B) the qualification of the borrower. For example, if it's a relatively small loan and the borrower has good credit, then it may be possible. But as the loan amount gets larger, there will be less chance of qualifying under those conditions. Likewise, if the borrower has bad credit, the chances are even less.

So the size of the mortgage loan plays a big role, as does the strength of your credit score and financial history.

A couple things worth mentioning on this subject:

• In light of recent economic events, most mortgage lenders these days are requiring a down payment for home loans -- 20% down in most cases.
• It used to be possible to find a lender who would finance the entire home value without requiring a down payment. But it's going to be harder to find one of those lenders in the current economy. It's just too risky for them.

Keep in mind that some areas are worse off than others, in terms of buyers getting mortgage loans. For example, here in Austin, Texas, our local mortgage lenders are not suffering as bad as national lenders because they did not get involved in risky subprime lending as much. So while buyers in some areas are having trouble getting mortgage loans, buyers in other areas might have fewer obstacles.

So the only way to find out for sure if you can qualify for a mortgage is to request some quotes from mortgage lenders. You can do that from out mortgage quotes page.

Another article you might want to read:
How to Get a Mortgage In This Economy

I hope that helps you. Good luck.