Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png 6 Ways To Buy A Home With Little Or No Money – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 14 Oct 2014 11:00:20 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 6 Ways To Buy A Home With Little Or No Money[/caption] Buying a home is considered by many as the "American Dream."  This "dream," however, is often not obtainable by many buyers.  One major reason why some buyers cannot buy a home is due to their credit scores.  Every loan program and lender is different, however, each one has guidelines when it comes to credit scores.  Most lenders will not give a mortgage to anyone without a credit score of 640 or above! Another big reason why buyers cannot purchase a home is due to not having enough money, or no money!  Buying a home is not cheap, but it can be done with little or no money!  There are different types of loans, grants, and incentives available to not only first time home buyers, but buyers in general! What does this mean for the buyer who has a 740 credit score but no money available?  It means they are now able to buy a home with little to zero of their own money and no longer have to wait several months or years to purchase! So what type of programs are available for buyers with little or no money?  I reached out to my good friend and mortgage expert Luke Skar from Inlanta Mortgage to get his advice and expertise on this topic.
First off, thank you Kyle for the opportunity to give my expertise on this topic as it is a very common question that is asked by potential buyers who don't have any money or very little to work with!  Buying a home seems like a daunting task to many first time buyers. After all, it can't be as simple as getting a loan on an automobile with no down payment, right? While there is a bit more paperwork and time needed to complete a home loan it is still possible to purchase a house with either zero down payment or very little down payment. There are actually multiple ways to buy a home without a down payment. In addition there are some other considerations potential buyers need to understand when using this kind of buying strategy. Listed below are the different ways to buy a home without paying 20% down. [caption id="attachment_1551" align="alignright" width="400"]Method #1 to buying a home with little or no money: 100% Financed VA Loan Method #1 to buying a home with little or no money: 100% Financed VA Loan[/caption] 1st Method: VA Home Loan The Veterans Administration (VA) oversees the rules for lending mortgages to veterans. The VA does not issue the loans itself but instead grants authority to banks, mortgage lenders and credit unions to offer VA mortgages. For Veterans that meet the proper qualifications, a VA home loan is a great way to purchase a home. First of all, the loan amount can be equal to 100% of the home's appraised value. Secondly, it is possible for the seller to pay up to 6% of the purchase price in closing costs. Third, the VA is not as strict on credit guidelines as some other mortgages. And fourth, the VA home loan guidelines only use one ratio test to determine if the veteran makes enough money to pay for the home, their current debt and expected living expense. 2nd Method: USDA Mortgage To some people it may sound strange to hear the acronym USDA associated with a mortgage. That acronym stands for the United States Department of Agriculture. This organization offers funding that will allow borrowers to receive a loan equal to 100% of a home's appraised value or the selling price, whichever is lower. In addition, much like the VA mortgage, sellers are allowed to pay the closing costs of the mortgage up to a maximum of 6% of the loan amount. The main caveat to using the USDA mortgage is that the potential home must be within a zone that has been labeled as rural by the USDA. However, that term is a bit misleading to most potential buyers. Most states throughout the country have multiple areas that are zoned as rural. In fact, the outer lying areas of most large cities have at least one area that is a rural zone. Your mortgage lender can look up the address for a potential home and let you know if the property is in the right zone. 3rd Method: FHA Mortgage For many years the FHA mortgage has been the most popular loan for people buying a home with either little or no money to use as a down payment. The Federal Housing Authority (FHA) operates in a manner similar to the VA. FHA does not offer the loan but rather gives permission to lenders to provide the mortgages according to certain guidelines. The FHA mortgage has lenient credit standards and will also allow the seller to pay closing costs, much like the VA and USDA loans. The FHA is different in that they do require 3.5% of the purchase price to be paid as a down payment. HOWEVER, this money does not have to come directly from the borrower. The money may come in the form of a gift from a parent or other relative. It can also come from a grant for borrowers that live within cities and counties that offer such programs. 4th Method: Conventional Mortgage With Only 5% Down Payment When banks first started offering mortgage loans the typical requirement was to ask the buyer to pay 20% of the home's price as a down payment. Over time, banks realized that borrowers with a solid employment history and good credit were a good risk and gradually lowered that requirement to only 5%. Granted, this may seem like a large amount to some people. However, when looking at a purchase price of $180,000 the 5% of $9,000 seems a lot more feasible than the $36,000 required for a 20% down payment. A conventional mortgage will require a very high credit score, usually around 700 or more. It will also need a strong employment history. For people that are self-employed, at least 2 years of personal and business tax returns will be necessary. [caption id="attachment_1552" align="alignleft" width="240"]Method #5 to buying a home with little or no money: Using money from Retirement Accounts Method #5 to buying a home with little or no money: Using money from Retirement Accounts[/caption] 5th Method: Using Money From Retirement Accounts Many employers offer a 401-K program or similar retirement system where employees contribute part of their pay and the company will match a percentage of the funds. For people that have been at their job a number of years, they may have a nice nest egg put away.  If the employer will allow withdrawals from the account this can be an option to get funds for a down payment on a home. Just be aware that the money will likely have to be paid back if the employee leaves the company. 6th Method: Using Lender Credits It is actually possible to get the lender to help with part of the down payment and closing costs. Banks, credit unions and mortgage lenders will charge fees in order to facilitate a mortgage loan. Part of the fee comes from the interest rate charged on the loan. Buyers can negotiate to pay a slightly higher mortgage rate in exchange for the lender using part of the fee to cover some of the closing costs or part of the down payment. This is a discussion that will need to be had directly with the mortgage lender since each loan and each lender operates in a different manner. Disadvantage of Buying a Home With no Money Down There are some drawbacks to purchasing a home without a large down payment. For people that pay less than 20% down there is a charge called mortgage insurance assessed to the borrower. This charge is usually a percentage of the outstanding loan balance and paid each month. This insurance is for the benefit of the lender, not the buyer. In the event that the buyer is no longer able to make the payments on the home and the lender must take possession of the property the insurance will pay off some, or all, of the outstanding loan balance. Buying a home is a sign of maturity and prosperity. Numerous studies have shown that children who grow up in a home owned by the parents are much better off emotionally and socially. Thanks to numerous mortgage programs it is truly possible to buy a home with no down payment and obtain a better social status. Other Home Buying Resources Buying a home in Rochester, NY?  If you are wondering what mortgage programs are available in Rochester, NY for buyers who have little or no money available, contact us and we'd be happy to recommend a quality mortgage lender!  It's extremely important to find out what the best type of mortgage is best for your individual circumstances! 
About the authors:  The above article "6 Ways To Buy A Home With Little or No Money" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>