[Terrance A]

I'm planning on moving in April. I decided I want to get into the housing market now, while everything is on sale. I don't have a down payment. I currently pay $1150 a month for rent, so I figure if I shoot for a $900 a month payment, that will compensate for some home expenses without affecting my budget. I'm considering "lease to own," but would rather just own. A piggyback loan might be an option, but it appears those are being phased out because of the mortgage crisis. I'm looking in the $120-150k price range. I want mortgage insurance, down payment, property taxes and everything else rolled into the loan. I keep Googling for information, but it seems like a never ending circle. Taking out a loan of this size is too important to just randomly pick a company who has a nice ad online. I also want to make sure I don't get screwed over by high interest rates or other fees, that ultimately cause more problems than it's worth. Anyone have some good advice? Would a mortgage consultant be a good idea? What about just finding a realtor and seeing what can be done? This is my first home attempt, so please be kind!

[Christopher T]

That can't be done. Although most closing fees and mortgage insurance can be rolled into the principal, the down payment and prepaids cannot. For an FHA loan, you must have a down payment of atleast 3.5% and for a conventional loan you must have atleast 5% normally.No mortgage company will allow you to take out a mortgage without a down payment... it indicates you are not ready financially to purchase a home.If you do not have enough for a downpayment, then start saving up and you will be ready to go soon. With the current market and this time of year, you are gonna find a nice home at a low cost even if you have to wait a couple months.As for companies, talk to all your local banks and you will find a good option that you are comfortable with.