Although most of the low-down and no-down payment purchase programs are long gone with the financial crash of 2008, we do have 1 lender who has 1 loan program that’s a 1% cash down payment program.
Here’s an example of a recent client of mine who used this program.
- Home purchase price – $85,500
- Seller contribution to buyer’s closing costs – $2,700
- 1% Down Program’s contribution to buyer’s down payment – $2,137
- Buyer’s cash out of pocket for home inspections, appraisals, utility company deposits, etc., – $500
- Buyer’s cash out of pocket on closing day, all-in – $1,033
The program is good in most of Metro Phoenix, AZ as of January, 2011. Among other things, buyers must meet a minimum credit score, and must have stable and verifiable employment income. Buyers must take a homeowners’ education class which takes about 1-2 hours of studying and about 15-20 minutes in exam time. The program can be used to buy a foreclosure (REO) home. The seller is not required to contribute to the buyer’s closing costs, but may.
Not all buyers qualify, and not all homes qualify. But it could be a viable option for you if you’re a little low on cash but want to be a homeowner.
Contact me for more details.
Heather Barr, Realtor
The Phoenix Agents at Thompson’s Realty
602-999-8831 or Heather@ThePhoenixAgents.com
photo credit: user daimon057 at the online photo sharing site StockExchange
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