Nothing spells stability like a house does. You realize, of course, that the only thing stopping you from owning your dream house is money. You have none. The money you saved up for the house's down payment has been used for some other personal emergency. But there is no need to fret. No money down home loans makes it possible for you to be the home owner you have always dreamed of becoming.
No Money Down Home Loans: Different Types
There are many no money down home loans, and each one is tailor to meet different needs.
1. VA, or Veterans Affairs, no money down home loans: If you are an active or retired member of the Coast Guard or Army, or you're the widowed spouse of one, you are eligible for the benefit of a VA home loan . Eligible Reserve and National guards who have rendered at least six years of service are also qualified for loans such as this. VA no money down home loans come with the condition that any eligible loan applicant may use this benefit for only one house at a time. Additionally, the house obtained with no money down loans should be used as the primary place of residence. The house can not be rented out nor should it be used as a vacation home or a secondary place of residence.
2. VA foreclosures: It is not common knowledge that even non-veterans can purchase a foreclosed VA property without downpayment. But yes, this is possible. All VA foreclosed properties are available to the public and may require a fee as low as $ 500 or even nothing at all.
3. Seller-assisted closing: There are home owners who sell their house to the price you are willing to pay and then offer you, say, $ 5,000 to finance the deposit at the closing of the deal.
4. Lease-purchase transaction: This is a rent-to-own transaction. The seller agreements to sell you the house for a set price, payable on a future date. Meanwhile, you both agree that you pay the seller a fixed monthly sum. This money is set aside and is considered the downpayment.
There are other no money down home loans out there. Your state or county could tell you programs or properties that welcome no-deposit home loans. All you need to do is take the time to inquire. Also, many federal agencies and lending institutions could have helped you locate VA foreclosure properties that accept no money down home loans.
Federal and government agencies, such as the US Department of Housing and Development, Department of Agriculture, and of course, the Veterans Affairs, could provide you with a listing of properties obtainable with no money down home loans.
Basic Requirements for No Money Down Home Loans
To qualify for no money down home loans, you are required to have a steady job, with a certain bracket of minimum annual income. Moreover, you must be a first-time buyer. No money down home loans regulations, however, can vary in each state or county.
It's easy to get a house through no money down home loans. All you have to do is ask the right questions and see the right people.