The FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
They are referencing the 203(b) program, and happily notes that closing costs for the loan, can be rolled up into financing, so if you have $6k, you can buy a $200k property, and the government takes the risk. I hear that very few banks want to do these loans, even though HUD is guaranteeing them.
I suppose later this year, at some regular meeting in the bowels of the HUD, someone will mention the subprime crisis, and how that might affect some of their homeownership policies.
a mortgage broker acquaintence was delighted to stumble over this program 7 months ago. If memory serves they ignore credit, doc check income and require minimal skin in the game. Not smart, but these programs have big friends in DC, Dodd, Frank and co.
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