Believe it or not, the majority of American families own a home. While we’re starting to see ownership rates trend back down, particularly in today’s recession market, interest in buying houses still exists.
The problem is, most people don’t have the money required, particularly a house’s down payment, to complete a real estate transaction.
What if we were to teach you how to buy a house with no money in your savings account though? Would you be interested in learning?
We certainly hope so because below, we go over steps you can take to scoop up a house with no cash-on-hand!
Explore Specialty Loans
Specialty loans are particular classes of loans that are issued by banks to buy homes. These loans are usually backed by government organizations which waive certain requirements that most loans carry, particularly, the need for a down payment.
For example, if you’re a veteran, you qualify for a VA loan which will give you access to a mortgage that doesn’t require you to put money down. You can also get those terms by opting for a USDA loan, although, you’ll have to buy a house in a rural area. You can check the USDA approved areas for the qualified location.
FHA loan requirements provide favorable down payment rules. Still, FHA will require some money down.
Opt-In to for Sale by Owner
For sale by owner houses are hard to find but they’re out there. In these transactions, you’ll be dealing with a homeowner directly rather than having to manage the transaction through an agent.
For sale by owner listings tend to be more open to owner financing, where the person that’s selling you your house is willing to take payments for it in monthly installments. You may be able to work out terms that enable you to make those payments without having to put forth a down payment.
Talk to Friends and Family
Many people find that their pathway to homeownership will require the help of friends and family. If you have supportive people in your life that can afford to assist, don’t be afraid to ask!
Make people you know aware that you’d like to buy a house but don’t have the money. They may be willing to forward your down payment which you can then pay off in monthly installments as you pay down your mortgage.
Learn About Wholesaling
If you’re trying to buy a house for investment purposes, wholesaling is a popular how to buy a house with no money strategy.
In short, a wholesaler will negotiate rock bottom deals on houses, get the terms in writing, and then re-assign that home’s contract to another buyer at a commission. When the other buyer accepts the contract, you’ll be able to pay for the house and score a sizeable royalty with no cash required.
You Now Know How to Buy a House With No Money
Most people believe that there’s no way to know how to buy a house with no money because doing so is impossible. You’re now more informed than everyone that holds that belief!
We hope you leverage what you’ve learned to accomplish your housing goals and welcome you to read more of the helpful content on our blog for additional information.