10 Ways to Buy a Home With Little or No Money Down Part 2
There are many ways to buy a home, even if you have little or no money to put down. To see Part 1 click here.
6. VA or Other No Money Down Loans
Look for conventional loan programs such as VA or FHA that require little or nothing down. VA loans have helps countless veterans get into their homes. There are often programs available to first time buyers or people who are distressed (such as with Hurricane Katrina) that will help people get into a home with little money down. You usually will have to qualify for the loan with the bank, though.
7. Find an Investment Partner for Equity Sharing
Look for an investment partner who’ll put up some or all of the cash in an equity-sharing partnership. You make the monthly payments and the two of you split the eventual resale profits.
8. Wrap-Around Financing
Wrap-around financing is where you assume a seller’s VA Loan by doing a new Contract for Deed. Since this contract is flexible and does not have to follow the old loan, you can ask the seller to carry not only the loan amount, but the rest of the purchase price of the house, letting you get in with little or no money down.
9. Rent-to-Own or Lease-Option
This is really is one of the best ways to get into a home of your own when you canít get a bank loan. Remember that you may still have to get a loan down the line. If you have a lease-option for 5 years, at the end of that time, you will need to purchase the house, so you can use the time to fix your credit, or use one of the other options that are discussed in our book to purchase the house at that time. You can always try to negotiate another 5-year lease-option if you need more time.
10. Government and Community Down-payment Programs
There are many community and non-profit organization programs out there to help people get into homes of their own. Many of these do no require any money down.
There are some organizations and programs that will pay for some or all of the down payment for you. Generally these are for lower to moderate-income individuals, but these days that includes a lot of people. You also usually have to be able to qualify for an FHA loan (which is somewhat easier than a conventional bank loan.) If you have been unable to get into a home because you donít have enough money for a down payment, then maybe one of these programs will be for you.
Below is a list of organizations that have down payment assistant programs:
National Home Foundation
The Nehemiah Program
New Song Down Payment Assistant Program
Also check in your local area, because many communities have similar programs of their own.
Above are 5 ways to Buy a Home with Little or No Money Down. Hopefully, it was helpful and will assist you on your path to homeownership and/or real estate investing.