6 Ways To Buy A Home Without A Down Payment
By Frank Oakerson
Entering the housing market for the first time can be an elusive
dream for so many would be homeowners. Down payments, closing
costs, attorney fees, and so much more can thwart even the
average buyer. If you have credit problems, little or no savings,
or a low income, purchasing a home may be out of the question. On
the other hand, there are programs available for buyers to help
them purchase their first home. Many of these programs require
little or no down payment, opening up a world of opportunities
for those previously shut out of the home buying experience.
Let's take a look at the various programs available to help you
buy a home.
VA Loan
If you are a veteran, then the Department of Veteran's Affairs
has a program that could be right for you. If you are eligible, a
VA Loan could help you buy your dream house and with no money
down. A VA Loan is available to both active and retired members
of the military as well as to their unmarried widows. Your VA
Loan isn't a one shot deal either; in 1989 Congress amended the
law to allow for veterans to get a VA Loan on a later home
purchase even if a VA Loan financed an earlier deal.
Lease Purchase or Owner Financing
Occasionally, you may come across an opportunity where the
current owner of the home is willing to hold the home mortgage
for you. With this particular situation, a traditional mortgage
loan isn't required, although a signed agreement that has been
reviewed by your attorney would be necessary to protect your
rights. A lease purchase is another option for home owners
struggling to raise cash for a mortgage loan down payment. In
this situation the seller would come to an agreement with the
buyer on the price of the home to be paid at a future date. In
the meantime, the buyer would rent the home for a period of time
with a portion of the rental income set aside as a down payment
or returned to the buyer at closing.
State Programs
Depending on your state of residence, your state government could
have programs in place to assist low income homeowners. In some
states, big breaks in mortgage interest rates and home mortgage
down payment requirements allow for new homeowners to purchase
property. This can involve you purchasing property in a
distressed area or purchasing a home that needs quite a bit of
work. Some home mortgage programs are geared toward helping
minorities, women, and people with disabilities, etc. Check with
a knowledgeable local mortgage loan professional for programs in
your area.
HUD - Housing and Urban Development
The Office of Housing and Urban Development has successfully
helped make home ownership a reality for tens of thousands of
buyers over the past several decades. Based upon need, the HUD
program allows for first-time home buyers to get a home mortgage
with little or nothing down. In some cases HUD covers mortgage
loan closing costs too.
Special Mortgage Loan Programs
At any given time, there could be other programs out there that
only a trained mortgage professional would know about. In some
cities, low cost housing is made available to police who agree to
move their families into troubled neighborhoods. In some states,
farmers can get a loan with no money down. These change
frequently, some seem to stay around, but others come and go.
Check with a mortgage professional to find the loan that is right
for you.
What About An FHA Loan?
For the record, the FHA {Fair Housing Authority} does not make
mortgage loans - they insure them. An FHA loan is a bit of a
misnomer as the loan is created through a home mortgage you get
through a lender but it is backed by the FHA. If you default on
an FHA loan the lender gets paid out of the FHA's funds. Unlike
the other choices previously mentioned, you will still be
required to come up with a down payment, but for as little as 3%
instead of the typical 20% required by most lenders. An FHA loan
is a good idea for the person not eligible for a no down payment
loan, but still lacking the means to come up with a lot of money
at closing.
Yes, you have options when it comes time to buying your first
home. By checking out some of the no down payment offers, you
could find yourself owning a home and getting out from underneath
your landlord's influence. Consult a mortgage professional to
learn exactly what home mortgage opportunities are available to
you.
Frank Oakerson is licensed loan officer #56753 in the state
of Texas. I am available to assist you in purchasing your
first home, bad credit mortgage, FHA Loan, VA Loan, etc. At
http://www.yourmortgage123.com ,
you will find a number of
informative articles, mortgage calculators, info on VA loans,
mortgage refinancing, stop my foreclosure, and getting
pre-approved. Stop by and let me get started on a Texas
mortgage for your property today.