Can I buy real estate with no down payment?

**rcasey524** · 08-18-2010, 09:40 PM

Hello, I am a college student 21 years old. Around where I go to school there are 3 floor houses and each floor typically has 4 bedrooms. The houses go for 600-900K.
I know for a fact because I was once in one of these houses that you can get 750$-850$ PER BEDROOM. That would be equal to 108K a year, if 750$ was charged per bedroom (3,000$ a month per floor). These would be 12 month leases

I would like to buy something to pay off my loans but do not have the money up front. My parents have VERY good credit and have a combined salary of around 150-160k They do not have the money to put down because they own another house and have too many other expenses. I will be going to medical school in the future so I will take the house eventually. My main question is....are my parents able to get one of these houses without putting any money down?? They said they have some money if it needs repairs/what not but not enough for a down payment. If they were able to get a house like this they would take a 30 year mortgage and I would put the left over money from the rent towards my college loans. When I graduate I will pay off the house. Is this possible to do? I know for a fact these houses are good money makers as you can see.

Thank you very much for the help I really appreciate it.

**lvagent** · 08-20-2010, 06:20 PM

There are 100% financing loans still available, but based on what you described it's a case of how much is left, not how much they make. The program is extremely strict, and I don't think it goes that high for loans although it does adjust to whatever maimum FHA loan limits are in the area.
Despite the fact of the good credit, they will dig into the finances and if the debt is too high they will not allow you to do the loan. They look at every case diferently, but one question they may ask is why is it that a couple that makes so much money can't save for a down payment.

**Sojourn** · 08-21-2010, 08:19 PM

Also, I think FHA loans do not allow you to use the property as a rental unit. I don't know if there's any difference if you're living there also and renting it out.

**TeamAguilar** · 09-08-2010, 01:06 PM

This sound complex but I think if you can convince FHA then you might get
lucky,so go ahead and start the process.Hope it works out for you!

**realestategirl** · 11-03-2010, 12:34 AM

There are options that mortgage companies can give you. There are the 100% refinancing or FHA loans. They will still require a downpayment, but a very affordable one. Only VA loans have the no downpayment policy, and you can only use this if this if you have a relative or spouse in the military.