I take it your brother is delinquent, and facing foreclosure?

If yes, call his bank. Tell them the story and see if they’ll give you a loan. It would be much easier for them than foreclosing on your brother. Doing this might not get you the best rate.

Otherwise, find a good mortgage broker in your area. They can look at all of your options with different banks and find the best deal for you.

How are you getting a house, when you already have one you cant pay for?
your previous question

Who can explaing to me why the mortgage company won’t credit my payments to my account?
Due to the economy, we have been a bit slow in paying our mortgage. We were paying the full amount every month, but usually a bit late. Because our payment did not include the late payment fee, they are holding our money and not crediting it to our account. They are saying we are 3 months behind even though they have all of our money, minus the late fees and 1 month’s payment (we are truly only 1 month behind). They are talking foreclosure now and will not accept any money from us unless it is for the total amount due. Why will they not credit our account with all of the money we have sent them?

Any advice on what to do to keep our house and to get the mortgage company to credit our account for the thousands of dollars they are holding onto?

I graduated college in 2004 with $60k in student loans and was able to purchase a condo for $110k with 100% financing (zero down). However, due to the recent housing crisis, 100% financing loans are no longer available. The lowest down payment you can get away with now is 3.5%. But keep in mind that if you are a first time home buyer, you’ll get an $8,000 credit on your taxes. Maybe you can borrow the down payment from a family member and pay them back with your tax refund next year?

Lenders don’t generally look at student loans as a bad thing. As long as you are making enough money, paying all your payments on time, don’t have any delinquencies, and don’t have much credit card debt, you should be able to get a mortgage.

One thing you should question is why the current owner is giving you the opportunity to buy their house for what they currently owe. Do they owe more than it is worth? Or are they a close friend trying to do a good deed and help you out? Keep in mind that the lender will require an appraisal on the house, and the value of the loan cannot exceed the appraisal value. If there are a lot of foreclosures in the area, it will really drag down the appraisal value.

Hope this helps, good luck!

As has been noted, the minimum down will be 3.5% with an FHA loan. You will also need 3 to 5% more for the closing costs unless you can get the seller to pay, and another 2 months of expenses in the bank before closing. About $1,000 of the closing costs will be out of pocket (appraisal, inspection, and insurance), so even if you get the closing costs paid for, it won’t come until closing and you will still have cash expenses.

There is also the problem of employment – you haven’t mentioned your job and how long you have been there – lenders want to see at least 1 and more of them want 2 years of steady full-time employment at your current employer to qualify.

Even FHA loans want 3.5% down.

The days of liar loans and nothing down are over.