If you are in the market to look at real estate for sale, but you are concerned about not having money to put down up front, then you want to educate yourself on some of the ways that you can purchase a home with no money down. This article will provide you with information on some of the ways you can get a home when you don't have the upfront money to put down, so you can get started on the next chapter of your life that includes home ownership!
You may be able to assume the mortgage
You may be able to use a 'subject to' real estate contract where you make use of the seller's current financing as a part of your purchase funds. This can especially be a good idea for you if the seller's interest rate is low. You will be given the title to the property, and in exchange, you will make the mortgage payments in lieu of the seller making them. You do need to understand that not all loans will allow this type of financing, so you will need to verify this is an option ahead of time.
You may be able to rent to own
You may be able to find a seller who is willing to do a rent to own option with you. With this kind of option, you will agree to rent the home for a predetermined amount of time before you can exercise the right to purchase it. In order to have this option, you may need to pay more in monthly rent or meet other agreed upon requirements. In most cases, some or possibly even all of the money you paid in rent will also go toward the purchasing price of the home when you go to buy it.
Negotiate on the down payment
When you go to make an offer on a home, you can try to negotiate the down payment terms. You may be able to get the seller to agree to pay the down payment, or you may be able to get them to give you a credit that will cover the amount of the closing cost. You may also be able to negotiate a balloon payment for a future date or pay the amount of the down payment in future installments.
Make a trade to cover the down payment
You may have something of value that the seller may find they like and the two of you can work out a trade deal to cover the amount of the down payment. For example, if you have a piece of land, an automobile, a motorhome or anything else of value that they want, then you can end up using that as your down payment for the house.