When I bought my first house I didn’t have the 5% down payment. My real estate agent set up a third-party under-the-table loan for the money. I never met the person who lent me the money. The loan agent at the bank knew about the deal, but he and the real estate agent knew I could pay and would pay so they “winked” at the loan.
We went to that real estate agent based on the recommendation of a friend who had worked a similar deal. That first year was hard though, we had house payments plus the extra loan. We payed it off though, and everything worked out OK. Good luck with your quest for the American Dream.
As others have said, do look at your other mortgage options besides conventional. FHA only requires 3 to 5 % down and state-run first-time homebuyers programs a like amount. You can pick up brouchures at any mortgage company, even if you’re not doing business with them. Such programs can really lower the out-of-pocket expenses for a first-time homebuyer. When you talk about a 10% down, it sounds like you’re talking conventional financing, which has its own benefits, but you don’t have to go that way.
Jodi
Fiat Justitia
As far as qualifying for the loan, if you’ve got any outstanding debt you’ll want to consolidate it into a single low payment (i.e. pay off or move the balances of the little store credit cards onto your one Visa card [it’s everywhere you want to be]). This way you’ll have lower monthly minimums.
For our down payment the Ex and I lived for two months on Discover Card and just kept our paychecks in the bank. Our minimum payment went up about $50.
I qualify for VA, but could get a better deal through FHA first time buyer program. Both wanted about 5% in either closing costs or downpayment.
Fixer uppers are fun, but don’t count on anyone else to help you fix it up. Even close friends/family get burned out on fixing up your house. Watch a lot of Bob Villa (the old episodes before he got a big head.) That woman that used to be on Home Time then got her own show. She’s actually an architect and she’s cute too. Home Time is no good 'cause that woman they replaced the other woman with doesn’t know jack and she’s uncoordinated too. (Does any of this make any sense?)
A legend in my own mind.