Boy – does that sound like a good deal or what? I know, it probably sounds too good. Or it sounds like an old infomercial from 15 or 20 years ago. Back then you could. A friend watched one infomercial which said you could buy a home with nothing down even if you do not have a job. He didn’t have a job, so he tried it. And he was able to buy a home.
But times are different. The days of no documentation, zero down loans are gone. And thank goodness. They were a partial cause of the real estate collapse of the mid 2000s.
But there is a form of zero down available to a select few home buyers. And these people are Veterans who are eligible for Veterans Benefits. Offering to help these brave women and men who have served in the armed forces is the least we, as a country, can do. The Veterans Administration provides eligible veterans the opportunity to obtain a mortgage for the full assessed value of an approved home. The buyer will still need to pay the closing costs, which can run$7,000, $10,000 or more. After a word from our sponsors, we will discuss options for those who are not veterans.
If you are having trouble saving the necessary 20% down payment for a home, plus the closing costs, we have good news for you. You don’t need 20% down. Call us to find out your options. Call Bunny and Art Reiman – Realtors- at 732-598-7700.
So it’s a given that you will need to pay closing costs. But here is an idea. Ask the seller to pay the closing cost for you. You can usually get them to do this by making an offer that they cannot refuse. Let’s say you make an off on a home for $300,000. We then tell the seller that we will increase our offer to $310,000. In return, the seller will pay $10,000 of our closing costs. Why would the seller say no?
You can then use the money you have saved for the closings costs and put those funds towards the necessary down payment. And the down payment, with a mortgage backed by the Federal Housing Authority, can be as little as 3.5% of the purchase price.
This is one way that you can possibly buy a home with nothing down.