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We found a house now what?

My husband and I have found a house. It is a foreclosure and needs lots of work. It is a good area with great schools and it seems like it can be worked out to fit in our price range. We currently live in cook county il and i work in Du page and the house is in will. We don't have a down payment and i have average credit. First time home buyers. What programs are out there for us to use. (don't know if you need this) I am the one purchasing the house my name my credit my income. The house will need work to be inhabitable. We are looking at a rehab loan. I wanted to know what downpayment programs are available also ways to avoid pmi without 20% down

Public Comments

1. It depends on the condition of the house. It needs to have flooring, sinks, toilets, or most mortgage lenders will not approve you on a loan. Always get a 30 year fixed rate mortgage. With no down payment you might be running into trouble. Most 100% financing options are gone and you will need to have 3.5% down payment plus your closing costs plus money left over to get approved on a loan. I would call a couple mortgage companies up first.
2. Brad up there is almost right. 100% is gone but its coming back. I don't think you will find one though. I have one but I cant offer it to you. However, FHA still has down payment assistance but not for long. Rates dropped tremendously this week so lock in a rate asap. FHA goes up to 97% and will allow you to go through the program for the rest. PMI can be avoided with an 80/15 which is two mortgages. 1st at 80% and the second at 15% but there will be 5% left that you have to bring.
3. Hi, good for you, now the hard part. The property is bank owned? Usually banks list the property and want people to deal with the agent, but, you can go to the bank. Tell them you want to apply for a loan to buy that house! By the way, usually if a property is held for more than a year by the bank, they will take 80% of book value, what they really have in it, that's a little secret, don't tell anyone! lol There are other ways to skin a cat as they say. Got a car without a loan, got a boat free and clear, does mom have a CD? You can borrow against these and other assets for cash to buy, but you must qualify with the payment on that loan and the mortgage. Sometimes you can do that. You said you were married, that means both you and your husband will be on the note and deed of trust, even if he has bad credit, the credit may be applied to you, but...both will be on the note. I am sure near the windy city, there are real estate investors (rip off artists) but if you get terms you can live with another person might buy the house and then sell it to you under a seller financed note. Ask Realtors if they know of such a person. They make money on the spread of the interest rate and they get to sell the house again if you defalut, but be careful, make sure you can afford it and don't eer get into an owner financed deal for less than three years, five is much much better. There are real reasons for that we won't go into here, it would be a book! Hope this helps you, Good Luck, B.