How to Buy a Home for Zero Down

Contributor

By eHow Contributing Writer

Article Rating:

(19 Ratings)

Buying a home for zero down can be accomplished, but may cost you more in the long run with all the additional fees and costs associated with this sort of loan.

Difficulty: Moderate

Instructions

Step 1

Ask lenders about any zero-down programs they have. Look in the yellow pages under "Banks," "Savings and Loans" or "Real Estate - Mortgage." Talk to the loan department of your financial institution or get a referral from a local real estate agent. You also may be able to find a mortgage online.
Step 2

Contact the county housing department in your area. There may be some federally or locally insured/backed financing programs that have zero-down options.
Step 3

Talk to your employer. If you are a police officer or teacher or belong to a large labor union, special financing assistance may be available to you through professional organizations.
Step 4

Ask the owners of the home you're seeking if they are willing to carry the loan. To compensate for paying no money down, you may want to offer more than the asking price or pay a higher interest rate.
Step 5

Have good credit. Typically, when a borrower comes in with a zero down payment, the risk of foreclosure is much greater, so the lender requires a satisfactory credit history. Check with your lender about program specifications.

Comments

mortgageinfo said

Flag This Comment

on 8/5/2009 This info is a bit outdated.

There are 3 ways to buy with zero down.

1- USDA Home Mortgage, great home loan, it covers most of the country. There is no monthly PMI and the rates are very good.

2- VA, you must be a veteran with a certificate of eligibilty. No montly PMI for this loan either.

3- Get a gift of 3.5% from a relative or a state/city agency. And use the gift for an FHA loan.

You can visit us at www.HomeMortgageInfoCenter.com, we have a unique system that walks you through and tells you the best loan for your unique situation. It even tells you if your likely to qualify! Try it out today!

bsherrod said

on 8/2/2009 Great Article, I think that in todays economic environment people need more aggressive opportunities to become homeowners. I was able to get a loan through a private source that few people are aware of. I had some serious credit problems at the time, but was still able to borrow the money that I needed to buy a home. I went to http://budurl.com/notapaydayloan and I got the information that I needed to borrow the money.

robkosberg said

on 6/22/2008 At this point (June 2008) much of this information is outdated at best. Zero Down Home Loans are still available and, in fact, better than ever.

Using a 501c3 charitable org. like the Nehemiah corp. allows you to receive a (HUD compliant) gift and get 100% financing AND all closing costs covered. Rates are in the low 6's and can even be bought down.

For more info go to www.zerodownwebsite.com

Rob Kosberg
Mortgage Planner
561.315.1222

MortgageHelp4U said

on 9/16/2007 There are actually a number of different options for people that would like to purcahse a home with no-money down. I have access to a variety of government sponsored loan programs that require no money down and offer very low 30 yr fixed interest rates. These programs do not require "good" credit and there are even ways to qualify if you have no "established" credit. If you would like more informtaion on qualifying for 100% financing please feel free to contact me or visit our website for more information or to fill out a scure application. We are a federally chartered bank that lends in all 50 states.

Thank you,

Cole Thimsen
First National Mortgage Sources
Direct 612-963-2570
cthimsen@fnlender.com
www.FhaSecureSource.com