How To Buy Homes With No Money Down
Do you want to know how to buy a home with no money down? Since the mortgage crisis of the past few years, banks have eliminated many of their 100 percent financing mortgage programs, making it difficult to buy a home with no money down. Many lenders require a twenty percent down payment, and most require a minimum five percent down payment. The Federal Housing Administration has loans available with a 3.5 percent down payment. However, if you would like to buy a home with no money down, there are still a few programs that can help you.
- Are you a veteran? If you have served in the military, you may be eligible to buy a home with no money down by obtaining a VA loan that is guaranteed through the federal government. Limits for the size of the loan vary based on the county in which you are purchasing a home, but are typically in excess of $400,000. You must live in the home you purchase using this loan. Surviving spouses of those who are killed during active duty may also be eligible for a VA loan.
- Are you interested in purchasing a home in a rural area? You may be able to buy a home no money down with The USDA's Rural Development Program. This program provides loans with no down payment for people purchasing a home in a rural area. In addition to 100 percent financing, these loans offer flexible approval guidelines, low interest rates, and no maximum purchase price limit. As with a VA loan, you must live in the house you purchase as your primary residence. To learn more, contact your local USDA Rural Development Office.
- Are you a first time home buyer? Most states have assistance programs and grants for people who are buying a home for the first time. Some of these include down payment assistance, which would allow you to buy a home with no money down.