How To Buy A House With (Little Or) No Money Down
Many people never buy the home of their dreams simply because they don’t think they have enough money for the down payment. They’ve been told through the years that they need 10 or 20 percent of the purchase price in order to buy a home.
Well, this simply isn’t true.
So why have so many real estate companies told them this?
Quite honestly, it’s because selling homes to people with 10 or 20 percent down is
easier than selling homes to people who have little or no money for a down payment.
Most real estate sales people would rather go after the “easy sale” than try to help
people who have special needs.
As a By Referral Only Real Estate Consultant, my mission is clear: To Help People.
That’s why we’ve created this special report and sent it to you with no obligation.
This report is specially designed for people with good credit and a good income, but
who just don’t have much money for a down payment.
Option 1: FHA Loans (cant do with a CPN. For CPN option go to Option 6 below)
Although this isn’t a “No Money Down” option, the FHA loan is by far one of the best
alternatives for people who want to buy a home and don’t have much money to put
down. With an FHA loan, you could put down as little as 3%. Plus, FHA loans are
easier to qualify for.
Now, 3% may seem like a lot to come up with, but many people find that when they
put their minds to it, 3% is actually possible. While you can’t “borrow” the 3%, you
can get a “gift” from a family member, borrow from your 401k, or sell some “stuff”
you have lying around. At the end of this report, we’ve included a special section
with great ideas for raising this small amount required for an FHA loan.
FHA loans do have requirements and restrictions. Not all townhomes and condos
qualify, and there is a maximum loan amount you can get. But if you’ve been
dreaming of a new home and think you might be able to “scrounge up” 3%, this is a
great way to go.
Option 2: M.H.D.C. Loans
The Missouri Housing Development Authority is a first-time homebuyers’ program
that offers below-market, fixed-rate, 15- or 30-year loans. There are restrictions as
to maximum household income, as well as the price of the home you are buying.
The only disadvantage of this loan is that if you sell the house before the end of the
loan term, you may have to “pay back” a portion of the subsidy used to get the lower
interest rate. However, if you’re a first-time homebuyer, this may be an option to
Option 3: Special Loan Programs
Special loan programs come and go quickly. There is one available right now that will
allow the seller to provide the 3% down payment required for a home loan. That
means no money out of your pocket if you know how to negotiate with the seller!
There is another program right now that requires only 2% including closing costs!
Wow! That’s practically the same as “no money down!!”
So, how do you find out what type of loan programs are available for you right now?
The best way is to work with a great mortgage broker who keeps up to speed on
these special programs. If you don’t know of one, we work with at least 3 such
mortgage professionals and we would be happy to refer you to one of them,
depending on your particular needs.
Option 4: Owner Financing
Owner financing means exactly that: the owner (or seller) finances a portion of your
home purchase. For example, you might borrow 80% of the value of a home from a
lending institution, and “borrow” the other 20% from the owner. In this situation, the
owner “carries back” a second mortgage.
Owner financing can be advantageous, especially to investors who buy up properties
and then rent them out. For the average homebuyer, however, owner financing is
difficult to find and requires some tricky negotiating. Even after successfully
negotiating a deal, it requires some detailed work by qualified attorneys in order to
protect the interests of all parties involved.
While you shouldn’t rule out owner financing, keep in mind that by looking for
someone who is willing to help finance your purchase, you severely limit your
choices. There are a lot of houses for sale today, but not a lot where owner financing
is an option.
Option 5: Lease-To-Own
With a lease-to-own, you essentially lease a home, but make larger payments in
order to begin accumulating a down payment. For example, if a house would
normally lease for $800, you might lease it for $1,000/month, with $200/month
going into a special account. At the end of a specified period, you buy the home
using the money in that special account as your down payment. However, if you
decide somewhere along the line not to purchase the home, all of the money in the
special account then goes to the seller.
Think of this option as renting with a forced savings account. If you can find
someone willing to do this, it’s not a bad option. However, most people who are
selling their homes need their money out of it in order to buy their next home, so
finding someone who is willing to lease to you may prove more difficult.
Option #6 Buying a house with a CPN SCN Number
If you are like 80% of Americans your credit is shot, your husband of wife suffers your presence and you are looking for an escape from credit servitude or a new start with a new home and a family that starts looking at you like a person that can make $%*t happen.
So you got yourself a mature CPN SCN number from iPower Credit Services (60 days old with a FICO score over 650) and you want to get into a house or an apartment, here is what you can do; Call us to learn how
Where To Begin
Now that you have 5 good options for buying a home for little or no money down,
where is the best place to begin?
The first step is get pre-qualified. And the best way to get pre-qualified is to find a
real estate professional who is dedicated to helping people like you get into the home
of your dreams.