Buying Homes With No Money Down

Recent Posts

How to Buy Your First Deal with No Money Down – Video Guide

How to Buy Your First Deal with No Money Down – Video Guide

Here is a detailed investigation about how to buy your first deal with no money down by Grant Cardone. I request you all to watch this one for detailed ideas and tips to know more about this topic –

No Money Down Loans – How and Why?

No Money Down Loans – How and Why?

First time home buyers are usually offered different kinds of skims. A popular skim is buying a house with no money down. Everyone’s dream is to have his/her own house. But money is the biggest factor to buy the house. If there is no down […]

Buying a Home with No Money Down

Buying a Home with No Money Down

Everyone has a dream to have a home of their own one day, no matter the age. Nonetheless, due to the current economic situations, it may seem impossible to achieve this dream. Buying a house with instalments or mortgage always comes up with an issue of having to raise a down payment. Luckily, it is possible, and there are various ways of buying a house with no money down thus read on to find out how possible it is.

Today, rent-to-own is a popular trend nowadays as a method of buying a house without any money down. It may be quite tricky and you ought to read the lease-purchase contract precisely to understand what you will be getting yourself into. Also, ensure you go through the clauses under all terms and conditions. Normally, a minimal fee of about 5% or less is often required to help secure the lease-purchase agreement. The right to exercise the option to buy is usually about three years and not exercising the option nullifies the lease-purchase contract which may make you lose your money all the same. You can inquire whether it is possible to keep the price of the property as it is until when you decide to exercise the purchase option, and this could help you save a lot of money.

Moreover, the seller’s selling price is usually way below the current market value or the appraised market value. Financing or mortgage companies give loans 100% of the market or assessed value. If the seller’s price is at 80% of the 100% loan amount, then you will have 20% available as equity. The seller ought to agree that the loan amount is the selling price and should also acknowledge the receipt of the buyer’s equity. In this way, there would be no money down coming from you, and it would seem like you have bargained your way out of the down payment. You can also try and find out the possibility of making the 20% as a discount from the seller to help you do away with the down payment as it would appear more transparent to the mortgage company.

In-house or owner financing is yet another way to consider at while buying a house with no money down. In-house financing ibis typically did by the owner-developer –marketer of real estate and this, therefore, means that they do own the land, have developed it and market it on their own. Most of the owner/marketer/developer outfits are usually flexible when it gets to sales especially when you have no money down. Some incorporate the down payment in the very first few months of mortgage payment depending on the buyer’s capacity. After the down payment is satisfied, the monthly mortgage payments return to normal. This method helps relieve one from the stress of having to come up with outright cash for the down payment.

There are more ways of buying a house with no money down although as a buyer you should go for those that are best fit for them. Always avoid those that are beyond your abilities or capacity.

The Best Way to Buy a House with No Money Down

The Best Way to Buy a House with No Money Down

Many would like to know the answer to the common question how to buy a house with no money down. Over the past years, most people could manage to get a house without having to place a down payment. Unfortunately, this situation has currently changed […]

Get Home Buying Process Tips

Get Home Buying Process Tips

Get home buying process tips if you needed, when buying a home you need to set a realistic budget for yourself. This will determine the price range you’re capable of paying for a home. You should also use a web based mortgage calculator to divide […]


Top Read

No Money Down Loans – How and Why?

No Money Down Loans – How and Why?

First time home buyers are usually offered different kinds of skims. A popular skim is buying a house with no money down. Everyone’s dream is to have his/her own house. But money is the biggest factor to buy the house. If there is no down payment needed then this becomes a huge help. Apart from the choices of a perfect house a buyer needs to go through some other process if the buyer intends in buying a house with no money down. The very first thing is getting approval for the mortgage loan. A common and popular concept for mortgage loans was the lender would provide around 80% of the total amount as a loan and the rest was provided by the buyer as down payment. But now the time has changed and buyers get 100% mortgage loans depends on their financial history.

In the past, the 80% loans were a pretty good deal for the buyer. But as the time has changed, some of the lenders offer 100% mortgage loans. Thus the buyer can get a 100% loan to buy the new house without any requirements of down payment. This process allows a buyer to buy a house without any big amount of money and have a house of his/her own for a monthly loan installment. There are several 100% loan providers in the market but the buyer needs to fulfill some basic criteria for that loan.

Requirements for getting 100% loan

When a lender approves a 100% loan, the lenders check the previous history of the borrower or house buyer. If the buyer has a good history of credit, then the lender will think of allowing them the mortgage amount. It also depends on the ability of the borrower. For example, if the lender does not find it feasible or thinks that the borrower’s income is not enough to buy a house then they will not approve the loan. As the lender is providing a 100% loan, the lender’s investment becomes a risky investment. So the lender wants to minimize the risks by analyzing the credit-ability or the borrower. If the borrower wants to have a 100% loan, then he/she should maintain a healthy credit, the longer the better. The borrower should pay off any due credit card withdrawal, any kind of loan and other dues. This will boost up the borrower’s credit-ability to get the 100% loan.

In the perspective of the lender 100% loan contains more risk compared to the general 80% loan system. As the lender is providing all the money needed to buy the house, the borrower has an edge of getting the house with almost no money. If the borrower does not need to pay a whole amount of money then it becomes easier for them. And people tend to take more loan of getting a house. This allows the lender to create more flow of the money and it improves the overall condition of the country’s economy.