Did you know that if you have no money to put down on a house or no money for closing costs that you can still buy a home in Metro Detroit. (2 part series)
There is still a way to do it with an FHA loan. In Wayne, Oakland, and Macomb Counties the FHA mortgage limit is $297,500. So the total purchase price of your Metro Detroit Home can only be $306,701.
There are non profit organizations that will give you the 3% down. Ask your mortgage lender about Ameridream, Genisis. Some states, counties, cities even offer downpayment assistance. The way the Ameridream or Genesis works is that you ask for 6% sellers concessions for downpayment assistance. That money goes to Ameridream or Genesis, then they give you the buyer the 3% you need for your down payment.AS OF 2008 THERE ARE NO 100% NO MONEY DOWN LOANS UNLESS IT IS A VA LOAN OR A RURAL HOUSING LOAN. AMERIDREAM AND GENISIS IS NO LONGER AVAILABLE.
In essence then you are asking for 6% down payment assistance along with 4-6% sellers concessions for closing costs, escrows, pre-paids. So the total you are asking for from the seller is 10-12% of the purchase price so you can buy the home with no money down. This is still being done in the Metro Detroit real estate market quite frequently. You too can buy a Metro Detroit home this way if the seller is willing to help you. It is just a negotiation with the seller and the realtors.