So, is there any hope for someone without a down payment to buy a house? Otherwise, I guess I'll just keep on saving...
my credit union (navy federal) has a 100% financing with nothing down. it is at a slightly higher rate and you have to pay like 1.75 point towards the closing costs. there is no PMI either.
i actually did the paper work yesterday with the credit union on the phone because my wife and I are looking to get preapproved for $400k and that was the preapproval loan he had for us. it was at 5.125% and would be like $2100 or so (mortage only not taxes) per month on the payment.
however, if we do the 5% down it would eliminate that rate and would be below 5, I believe 4.875 or something, but we'd have to cover the closing costs and what not. but we don't have enough saved for 5% down and to cover the estimated closing costs, so that is why for the preapproval we went w/the other one.
he said it's not final at all and if we actually put a bid in, then we can go for another loan, especially if we negotiate and the seller pays for closing costs.
and this is if we paid $400k for a house. we're looking at ones right now that are $350k.
EDIT:
and this is not an FHA loan, this is regular old fixed 30 year.