How to Buy a Home No Money Down
If you watch any late-night television, you have seen the infomercials talking about buying real estate with no money down. You don't have to be a real estate guru to buy with no money down. Not all properties can be bought with no down payment, but they are out there. You just have to look for them. Here are two of the best ways I know to buy properties with no down payment. I hope this helps!
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Owner financing or "rent to own" is a good way to buy a property if you can find a willing seller. I know what you are thinking. How many real estate sellers are going to be game for something like this? Well, there has to be something in it for the seller. To get terms like this you may pay the sellers first price rather than haggling over selling price. Your advantages are obvious, you have no down payment and you are also not tying up your credit. You may suggest to the seller that he names the price(with in reason of course) and you will name the terms. In this case the owner comes out good because he getting his price plus interest. You are coming out good because you are not out any money on the front end and your credit is untouched. For that matter you don't even need credit!
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Get your seller to finance the down payment. You are getting your financing from your lending institution and basically the seller is taking a second mortgage on your property. Advantage for your seller is money in hand at closing. Your advantage is no down payment!
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Another way to get into a property with no money down is by overborrowing. The key to overborrowing is getting the property at a bargain price. In this deal, the property has to appraise for substantially more that the selling price. You are basically borrowing your down payment. The buyer is financing more than the purchase price to cover the down payment. The seller has to work with you to make this work. In real estate just about any kind of deal is possible if you have a buyer and seller that will work together.
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Tips & Warnings
Always be on the lookout for motivated sellers!
