Owning a home is everyone’s dream. Do you know you can buy a house with no money? In case you can’t afford to pay full charges for your house, you can have a close person stand out to guarantee you a home but not live in it.
There are several financial plans you can employ to acquire your dream house with little or no money as follows.
1. FHA Loans
FHA Loans are usually the most common mortgage loan programs today in the United States. This is because they have relaxed guaranteed financial support guidelines than Conventional Loans and other mortgage loan programs.
A guarantor needs to have a qualified income to be effective. If he or she has higher debt ta o incumbent-to-income is appropriate. Incomes used and considered qualified are social security income, pension income, and jobs as long as cash streams are expected for the next three years.
2. VA Loans
They are the most efficient mortgage loan program available for the non-occupant co-borrower because you don’t have to put any money down on a home purchase. Buyers can purchase a home without money from their pockets with a VA Loan program. This only happens if you can get a seller’s concession to cover the closing cost.
Mortgage Rate on VA Home Loans
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enhancing the lender to provide you with more favorable terms. Mortgage rates on VA loans are lower than other loans offered. There is no mortgage insurance on VA Loans. The Department of Veteran Affairs is the governmental entity that sets standards and VA Lending Guidelines on VA Loans and insures VA Loans.
Advantages of VA home loan benefits
- No down payment is required.
- Low-interest rates on home loans.
- Limited closing cost.
- You will not need private mortgage insurance.
- VA home loan is a lifelong benefit.
3. Opt for a Homebuyer Assistance
For first-time home buyers, there are countless resources available to help you go through the buying process as well as available programs at local and national levels that offer financial assistance to individuals buying homes for the first time. In some cases, previous homeowners can also get assistance. You need to look at the local programs, state programs, and Non-profits profit programs available within your reach.
4. USDA Loan
The USDA loan program is an ideal loan program where borrowers qualify for home loans without any down payment. It is otherwise referred to as a rural development loan. Meanwhile, USDA loans require mortgage insurance, and the loan limits and their income restrictions are determined by the area of location.
5. Receive a Down Payment Gift
A family member may give you money that you may use for your down payment given that you follow the regulations set by your financier. You will need to have a record of who gifted you the cash, the nature in which they gave it to you and the date it was given and clear that no payment is expected.
6. Have the Seller Pay Closing Costs
In a situation where the supply of the real estate market in your area exceeds the demand, it may not be appropriate to ask for closing costs.
However, in a situation where the demand for homes exceeds the supply, the probability of a seller paying closing costs may be limited.
7. Foreclosure
It is the process in which your house can be seized by your servicer, to sell it to cover the money owed. Below are factors to consider to avoid foreclosure.
How You Can Avoid Foreclosure and Keep Your House
Have a repayment plan
Have a clear plan on how you are going to pay for your mortgage. In case you have skipped a few mortgage payments, you can continue making the payment with an added amount every month to cater to the dues owed.
Social forbearance
This option gives you additional time to pay for your mortgage.
Modified loans
Modified loans enable you to add the missed payment and all other legal charges to your total loan balance. This gives you the advantage to communicate with your servicer to design a new payment plan.
Seek extra time to arrange for a private sale
In case you find it difficult to pay the loan, you can seek extra time to sell your house privately and pay the standing debts.
With all the information given, you can now buy your house with little to no money.