Wouldn't it be great if you could buy a house without having a buy a large downpayment? Buying a house with no down payment may be possible!
Of course, there can be no better choice than to own a home in your name.
But with the financial stress increasing every day and the economic downfall poised to collapse in 2019, it becomes difficult for some people to buy a house.
Why is it difficult to buy a house?
Moreover, to start the process of buying a house, you need to first pay an upfront deposit to the seller or a down payment to the lender for your home loan. Most people cannot fathom buying a house without paying a large down payment which is usually 5-20% of the property value depending on the loan product.
How to buy a house without paying a down payment?
But now there are certain options available in which you can go about buying a house with no down payment.
1. A conventional mortgage with no down payment.
The conventional mortgage is a type of loan in which the down payment is only 10 to 20 percent. But, it can also be done with no down payment at all. If you have a good credit score but no cash in hand, you can start buying a house with no down payment.
The drawback? The deterrent for this type of loan is that you have to pay a higher rate of interest.
Also, you need to keep one of your properties as a guarantee against the payment of the mortgage loan. This is because if you are going with buying a house with no down payment, it poses an extremely high risk on the lender in case you are unable to settle the amount in time.
2. Federal programs.
Another way for buying a house with no down payment is to attend the federal programs. The VA (Department of Veterans Affair) is a kind of loan that is given to the military service officers who have retire from the service. With this approval, you can buy a house with no down payment.
Similar programs are available for those who do not have enough credit or cash to pay for a downpayment.
3. Negotiate with the seller.
Also, if you can win the confidence of the seller by showing him the proof of your steady job and income, you can successfully go about buying a house with no down payment.
If the seller is convinced that you can settle the amount in time without having to pay any down payment, you can surely win the case.
Thus it is necessary that you have a high credit history in your name and are eligible in paying a higher rate of interest. You can check our recent article on how to check your credit score instantly here.
In these 3 methods, you can consider buying a house with no down payment. In summary, your credit score and monthly income stand as proof that you will not leave the lender empty-handed in the end.