Buying A House With No Money Down – What Are My Options?
Buying a house with no money down is possible for many people, and there are a number of options that can help you manage this. Real estate investing has become very popular, and many individuals purchase homes each year. With a zero down payment the rate paid will be higher, but if you have excellent credit then this is not a problem as far as approval is concerned. A land contract may also be arranged between the buyer and seller, and this method of buying a house with no money down may be possible regardless of your credit rating or credit history.
There are many methods and steps to buying a house, and some lenders advertise loans with no down payment required. If a seller is motivated and there is an existing mortgage then it may be possible to assume the mortgage, without the need for additional financing. This method of buying a house with no money down may require lender approval, and this may not always be an option for some home seekers. It is possible to take out a loan against your retirement account, and using 401k to buy a house outright is common. This will allow you to pay the entire purchase price, instead of making a down payment and then having a monthly mortgage payment.
If you have poor credit then the 30 year fixed mortgage rates my be outrageous, if you even qualify for this loan type. Your only option may be buying a house with no money down using alternative methods instead. The best thing to do is to evaluate all of the options that are available, and then choose which of them are the best in your specific circumstances and situation. If the best home mortgage lenders will not offer a loan with no down payment, do not despair, there are other ways to achieve home ownership.