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. My mission is clear: To Help People. That's why I've created this special report and provide 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 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 and you don't need "perfect" credit. 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 or borrow from your 401k. 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: VA Loans If you are a veteran this is the best way to go. Providing you are eligible and can qualify with the payment you can obtain 100% financing with no down payment required. The seller and/or builder is allowed to pay the veterans closing costs and prepaids. 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! 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. 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. Where To Begin Now that you have 4 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 or pre-approved is to fill out the quick form on this web site. I'lll do more than help you get financed! Financing is only the first step in the home-buying process. I am dedicated to helping you through the entire process, delivering world-class service all along the way. Because of my 30 years of experience and extensive contacts I can refer you to competent real estate persons or builders in the area that you are looking to help you find the right home, negotiate the right terms, etc. We will make sure that you actually get to the closing table. If you'd like to know more about your financing options or to set up a personal consultation, please contact me Colleen De Long-Rader at 360-882-7501 or 1-888-584-2244. Simple Ideas For Raising Money For A Down Payment... 1. Borrow against a secured asset like a car or boat. You would need to make sure you can still qualify for the loan with this new payment. 2. Have the seller or lender contribute towards your closing costs and prepaids. 3. Borrow from your retirement fund. Many retirement funds (401k, IRA, etc.) have provisions for you to borrow from them for important reasons. This counts as an important reason! Check with your plan administrator or your financial advisor about this option! The nice part about this is that as you repay your loan, you pay the interest to yourself! 4. Ask your family. This is probably the hardest thing for some to do, but you might be surprised at how willing a family member would be to help you buy a house, even if they've said "no" to you before when you tried to borrow for other things! If you do this, you'll need a form from your banker stating that this is a gift and not a loan.