How to Buy a House with No Money Down
Buying a new house with no money down can be a challenging task.
Most people do not even realise that there is a possibility to buy a new house without making any down payments. This method is especially useful for those who are looking to invest in housing properties. Most banks would require you to pay 20 percent down payment to be financed but there are some cheaper ways of obtaining a new house.
If you are looking to buy a new property but have no down money, you will be glad to know that it is possible to get this job done by following some simple instructions, which have been detailed in this article.
Instructions
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1
Before doing anything else you will need to make sure that you have the capacity and funds to convince banks to offer you a house without any down payment.
A large number of lenders and sellers now allow the buyers to roll the down payment into the purchasing price, which is paid in installments. Find out if this is a possibility. Although this option will result in higher monthly payment, you will not be required to pay any money upfront. -
2
If possible, negotiate a separate installment plan for the down payment. Talk to the lender or seller to find out if he/she can allow you to pay the down payment on monthly or weekly basis. This method will not have any effect on the purchasing price of the property.
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3
Try to work out a trade with the lender. Depending on your areas of expertise you can offer mechanical, carpentry or consultancy services for the down payment price. Another option to avoid putting money up front can be the trade of possessions such as a vehicle, a motor bike which equals the down payment price.
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4
Politely ask the seller to transfer the mortgage on your name. If the home owner is eager and willing to work with the buyers, this can prove to be the perfect choice. If possible, ask the seller to sign a legal contract to effectively close the sale.
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5
Lastly, you can speak to one of the customer services members at your local bank to find out if there are any programmes on offer that will allow you to pay little or no down money when making real estate purchases.
