No Down Payment? Options To Consider For Financing Your Home


One of the most discouraging things about renting is that that rental payment pays someone else's mortgage instead of bringing you closer to home ownership. However, rustling up the cash for a down payment on a home might not be in the cards for you. So, is there a way to get into your own house sooner when saving thousands of dollars is not an option?

Rent To Own

It seems like a dream come true: you find your house, but you don't close on the sale for a few years. In the meantime, your rental payments go toward a downpayment or reduce the selling price of the house to make a smaller down payment possible. This can be a win-win option for sellers who are having a hard time moving the house and for buyers like you who are struggling to secure financing without money down. However, it can be difficult to find sellers who are willing to enter into a rent-to-own contract, and you do risk losing all the money and deposits you put down on the house if you back out of the contract. Consider your rent-to-own agreement to be as binding as a closing contract. 

Down Payment Assistance

There are actually many programs in place to help people purchase homes if they cannot get traditional financing. You might already know about federal assistance programs like FHA loans, but your state and your city may also offer assistance. For example, Ogden, a city in Utah, has an "Own In Ogden" program to help provide financing to help revitalize some older neighborhoods that need new life and TLC. This city also offers incentives and assistance for civil servants like teachers and fire fighters who make a low wage but contribute to community. Check out what incentives might be offered in your city or county. 

It is often easier to get down payment assistance if you are buying your first home, if you intend to live in the home you are purchasing, and if you have a lower-middle class income. Also, the federal government like to see development in more rural areas, so buying a house away from the city in approved development areas also helps secure a grant or a low-interest down payment loan.

You can also get down payment assistance in some states if you have served as an active duty service member in the military. Talk to your real estate agent about what grant and opportunities might be available for you.  


25 April 2016

Choosing The Right House

When I started looking for a new house a few years ago, I realized that I had no idea what I really wanted. I knew that I wanted a place that had been updated recently, but apart from that, I was completely in the dark. After evaluating my budget and considering my options, I decided that it would be a good idea to go around with my real estate agent to help me to find a place. My agent was incredibly helpful, and I was able to narrow down my choices within a few hours. This blog is all about making the ever-important decision of becoming a homeowner.