You save money over these years and are waiting for this one moment in your life – to buy a house. After all the struggle and finances that you have managed to arrange for home buying; at the last moment, you realize that it is not going to be enough. Disappointment looms large. This is something many people go through. In case you have enough money to pay the monthly mortgage, but do not have extra on your hands, one of the possible solutions is that you can purchase a house with no money down. Seems pretty economical and convenient? Well, this is a good option, if you are really in that bad a financial condition; otherwise, it is always better to do the down payment, so the burden of payback is lessened to some extent. The paragraphs below offer some tips on the same.
Tips to Buy a House with No Money Down
- Get hold of a home mortgage or loan expert and ask about home loan programs, where you get 100 percent loan, or ask about no money down home loans. This way you will get a total finance for your house.
- Now, there would be a closing cost other than the down payment and that has to be paid, although you might be getting a complete home finance package.
- The financier who will give you no money down mortgage, will analyze and examine your credit report and credit history and general credit statistics. So, to steer clear of any aberrations, just make sure that you have good credit history and credit score.
- If the financier tells you that the credit score is good enough, then go ahead and take the plunge or ask the consultant about how can you go about your credit repair.
- Once you are done with this, then half of your battle is won. Now, you can begin looking for a home with the help of your realtor.
- After this, ask the realtor to write a contract for the particular home you zero in on. In addition to this, suggest the realtor to request the seller to pay for the closing costs as well.
- Once the contract is accepted by both parties, you most probably should be ready to close in approximately a month and a half. Again, here is a catch. There are a few other extra expenses, like appraisal cost, cost of inspection, legal consultation fee, and so on. As a buyer, you would not be exempted from that, so you would have to keep in mind that as well.
- If you’re lucky enough, the seller might pay for these. But still, it is better to be ready with adequate finances.
- Another way you could buy a house is again related to seller financing. If the seller is financing, then you would surely get the job done easily.
- A great way to escape from the down payment is to have your friend pool in, so you can buy a house together. The logic being two different people with their different credit histories can actually work towards buying a house with no down payment.
- Also, check out if there are any home loans for first time home buyers (if you fall into that category), like the Federal Housing Administration (FHA) loans and the likes. These home loans for first time buyers can also help you in buying your dream house.
- Last but not the least is, ponder over buying a small property lot. For buying that, there would not be much of a credit analysis, etc., after which, gather your finances and credit history, so that you would qualify for a mortgage loan or a no money down mortgage loan. Then build your own house on that plot!
Finally, you cannot buy a house with no money; whatever you do, you have to pay some amount. For the first time home buyers, it is better to have a clean credit history and a financial back up. For them, as mentioned, there are various first time home buyer programs which they can look up.
Reconsider every factor prior to making a commitment. A small mistake could cost you a lot. Good luck!