Can I Buy With Less?
You Don’t (Necessarily) Need Huge Savings to Buy
One of the biggest misconceptions I hear is:
"I'd love to buy a house, but I don't have enough saved for the down payment and closing costs."
For many buyers, that assumption keeps them renting longer than they need to. A few years ago, I was one of them and I wish I had had a Loan Officer tell me what I’m about to tell you.
The reality is that there are programs available that can help qualified buyers with both their down payment and closing costs.
And no, it’s not just for first time buyers or part of a government program. Though, those are available if you qualify.
This can sometimes be up to 5% of the loan amount for qualified borrowers, subject to program guidelines.
Assistance programs are not grants in every case. Program structure, repayment requirements, and eligibility criteria vary by lender and loan program. They may also affect loan terms, interest rates, repayment obligations, or overall financing costs
While every situation is different, buyers who can answer "yes" to most of the following may be a good candidate for further review:
✔ Credit score of 600 or higher
✔ Steady verifiable income
✔ Two-year employment history
✔ No late payments in the last 24 months
✔ No major derogatory credit events (excluding medical collections) within the last 48 months
Meeting these guidelines does not guarantee approval, but it is often a strong starting point for determining eligibility.
How Much House Could You Qualify For?
The amount of home you may qualify for depends on several factors, including:
Your income
Credit score
Monthly debt payments (Car, Insurance, Loans, etc)
Taxes and insurance on the house
HOA
Other recurring monthly expenses
Generally speaking, buyers with higher income, stronger credit, and lower monthly debt obligations usually qualify for higher loan amounts.
What If You Had a Few Late Payments?
This is the biggest challenge many people face. You are otherwise qualified, but you had a couple 30 day lates or a collection in the past.
You may still qualify depending on the overall strength of your application. However, depending on the lenders, they may ask for other criteria such as:
A higher credit score (usually 640+)
A letter of explanation
Evidence of compensating factors
Proof that the lates/collections have been addressed
Could You Buy With Very Little Out of Pocket?
In some cases, yes.
When down payment assistance is combined with seller-paid closing costs, qualified buyers may be able to purchase a home with significantly less cash than they expected.
Not every seller offers concessions, and not every borrower will qualify, but it is often worth exploring your options before assuming homeownership is out of reach.
Can You Buy With No Money Set Aside?
Unfortunately, in most cases the answer to that question is no.
Even with down payment assistance and seller-paid closing costs, there are usually other costs associated with buying a home such as:
Deposits
Inspections
Other costs not covered
In most cases, yes.
However, different rules apply depending on if they will be living in the home or not. This is something you should discuss with your loan officer prior to putting in your application.
On a side note - If you are planning on having a co-borrower that is not your spouse, you might want to consider a written agreement beforehand. This is not legal advice and as a loan officer I have never asked for it. But let's face it, Sheldon Cooper was onto something with that roommate agreement. Whether or not you decide to have an attorney draw it up is completely up to you.
Have questions or want to see what you may qualify for?
No pressure. No obligation. Just answers.
Apply online at AmysLoanApp.com or reach out to schedule a time to talk.
Equal Housing Opportunity. Motto Mortgage First Choice, NMLS #1787716. Amy Mulneix, NMLS #2799096. Licensed by the Texas Department of Savings and Mortgage Lending. All loans are subject to credit approval and program guidelines. Loan programs, rates, terms, and qualifications may change without notice. Not all borrowers will qualify. This is for informational purposes only and is not a commitment to lend. Additional terms, conditions, and restrictions may apply. Texas Consumer Complaint Notice available at amysloanapp.com. If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed. Each office is independently owned, operated, and licensed.
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