| Saving for a down payment on a home can be | | | | do not have a down payment of 20% of the |
| very difficult, especially with the seemingly always | | | | purchase price. |
| increasing cost of living. Families with low-incomes | | | | Why don't you purchase a home without taking |
| are often devoting all their money to the | | | | out a personal mortgage your self? Another way |
| necessities in life such as clothing, food and rent. | | | | of buying a house without a down payment is to |
| Some families simply don't see a way out of | | | | assume an existing loan form a current home |
| paying rent to a landlord because buying a home | | | | buyer that is selling the home. You literally take |
| is completely out of reach. | | | | over the debt, as if it were your own, and make |
| For many people, the option to buy a home as | | | | the monthly payments. |
| opposed to throwing the money away and not | | | | This eliminates high closing costs and usually keeps |
| building equity in a home is one they are not | | | | the interest rate low. Many people who really |
| educated in. Unfortunately, not everyone is aware | | | | need to sell their home and who are motivated |
| of the options that have come about with the | | | | are likely to sell the home by having the buyer |
| government wanting each American to have the | | | | assume the debt. Pre-foreclosure homes are |
| ability or at least option to purchase a home. | | | | great places to look because these people are |
| Purchasing a home is considered an American | | | | avoiding foreclosure and the horrible credit |
| dream and today, more than ever there are | | | | problems having this item on your credit history |
| opportunities for people to buy a home, even | | | | can bring. They will do anything to rid themselves |
| with no money down. Even with increasing home | | | | the responsibility of the home, and by you |
| prices and cost of living, this dream is available to | | | | assuming the mortgage, you are actually helping |
| those people who are willing to get educated and | | | | the home owner out! |
| talk to the right people. | | | | Private Mortgage Insurance is a possible but often |
| So how do you purchase a home with no money | | | | expensive option. If you have a down payment |
| down? There are a few different ways of doing | | | | less than 20% of the asking price or no down |
| it, and depending on your specific situation, one | | | | payment at all, you can pay extra money as |
| may be better than another. | | | | insurance to the lender that you will pay back the |
| Some lenders will offer you over 100% of the | | | | money loaned. This can end up being thousands of |
| asking price of the property in question. For | | | | dollars, but yet still an option for those who wish |
| example, they may lend you $257,500 on a home | | | | to purchase a home. Just be sure you understand |
| going for $250,000. This is 103% of the purchase | | | | that you will be paying a lot more. |
| price the lender would be giving you. This money | | | | In order to find these mortgage and zero down |
| will cover a down payment as well as some | | | | payment deals, ask your local bank for |
| closing costs associated with buying a home. You | | | | references to lenders or check the yellow pages. |
| will have no equity in the home, and essentially be | | | | Be sure to find lenders or brokers who are |
| upside down on the house by owing more than | | | | qualified with the proper licenses and verification |
| the property is worth. However, if you are | | | | as well as many references showing how well |
| committed to paying the monthly mortgage | | | | they have done in the past. |
| payment on time and in full, you will slowly but | | | | It is especially important to find honest brokers or |
| surely build the equity back up in the house. | | | | lenders in this sort of deal, because there is more |
| This option is good for those who just can not | | | | of a chance that zero down payment lenders will |
| save up enough money for a down payment, but | | | | take advantage of the clients they claim to help. |
| has income that can be put towards a house, | | | | Not all of them, but just be sure that you are |
| rather than an apartment. You can negotiate the | | | | dealing with the real deal, not someone who is |
| terms so that your monthly payment is | | | | going to hurt your financial situation. |
| comparable to the rent payment you are | | | | Zero down payment options have allowed many |
| currently paying. | | | | people who never thought buying a home was |
| Another option a lender may have for you is a | | | | possible, a reality. You can too by performing |
| deal called an 80/20, in which the lender will loan | | | | some research and finding some options that will |
| you 80% of the purchase price and then make a | | | | work for your situation. I recommend that you |
| home equity loan for the remaining 20%. Perhaps | | | | avoid paying Private Mortgage Insurance if |
| the percentage amounts may differ depending on | | | | possible, because it really is a lot of extra money |
| your lender's available options. | | | | that does not need to be spent. Find someone |
| This option is great for those who can not save | | | | who is willing to work with you and put you in an |
| up for a down payment and do not want to pay | | | | affordable home that every person deserves to |
| thousands of dollars on Private Mortgage | | | | own. |
| Insurance, which is usually charged to those who | | | | |