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Is it still possible to buy property with no money down?

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This use to be a popular way to acquire real estate, but is it no longer allowed as much by lenders?

asked Jul 26, 2015 in Real Estate by george (4,150 points)
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2 Answers

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While it is rare, sometimes it can be all about the timing if you are looking to purchase property without having any sort of down payment. Once you have a piece of real estate in mind that you would like to buy, you will need to take your time to be sure that you have everything in order.

Check and see if there is an existing mortgage in place. If so, you may be able to assume the mortgage and step in to make payments on it. Keep in mind that there can be a clause that prohibits a new buyer from taking on the mortgage so you need to do your homework first.

There are also options where you can try to get seller financing or you could try to lease the property with the option to buy. From there, you can see about swapping for personal property if you are going with a private sale or you could even try to talk with the current owner to negotiate the down payment that is being asked for.

answered Jul 27, 2015 by HollyC (16,400 points)
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Yes, you can buy a house with no down payment.The government offers a few choices when it comes to zero down loan options, including VA loans, USDA Rural Development loans and subsidized loan programs.[1] For more information about the different loans that require little to no money down, check out this article from Bankrate.com. [2]


If you are a single parent or a family with low income, you may also want to check out Habitat for Humanity. This nonprofit Christian housing program builds and renovates homes for people who have a steady income, are willing to put in sweat equity to help build their home and can make affordable monthly payments.


Additionally, if you can find a home that is listed below the appraised value, you may be able to use the difference between the selling price and the appraised value as a "down payment." For example, if you find a home that is listed for $100,000 and the home is actually valued at $120,000, the $20,000 in equity can be used as all or part of your down payment. 


Finally, many lenders allow the seller to pay for most, if not all, of the closing costs. This can help you have the money needed for your down payment. 



1. http://www.realtor.com/advice/buy-a-home-with-a-low-or-zero-down-payment/

2. http://www.bankrate.com/finance/mortgages/4-mortgages-that-require-little-money-down-1.aspx

answered Jul 29, 2015 by LisaH (33,300 points)

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