How to Buy a Home With No Money Down Even in Today's Market
The shocking and horrific news about buying a home continues to keep potential homeowners on the fence. While its true that it is a bad time to sell a home, the opposite could not be further from the truth about buying a home. Bank owned properties, often called REO's (Real Estate Owned) are often bought at fabulous discounts from these banks thus reducing the market values of suburbia, USA. These values then become the prevailing market value and sets the next trend for agents, investors, and retail buyers in which they decide what price to pay for a property.
All this means is that if you want to buy a home today, you are going to get a really good, super duper, extraordinary price no matter the type of property or even the look of the property. For example, if you want to buy a home in Fort Washington, MD, which is a thought after neighborhood, chances are you are going to get a great deal. Fort Washington, MD is home of the new National Harbor and many Investors are looking to purchase investment property as they know depressed values will not prevail over the long run. Even consumers who want to live in a property for their own use will find single family detached residences IN Fort Washington, MD.
For the buyers that qualify you can even buy property with no money out of your pocket. Even though certain criteria must be met, you can still achieve the dream of home ownership. The great thing about it is that it is easier than you think. When trying to obtain financing, it most likely will benefit you to go with (the resurgence) an FHA loan. FHA loans pay up to 97% of the homes value or sales price, whichher is lower.
Here is how it would work for you if you qualified. Lets say that the purchase price is $ 200,000. FHA will loan up to $ 194,000 (97%). That leaves us with $ 6,000 to come up with. PLUS all, or most, of the closing costs. Most FHA programs allow the seller to pay up to 3% closing help, so we would get the seller to lend the 3% and we would receive a "gift" from someone else. A gift is an asset given to someone as a pure kind gesture. If those work hand in hand, you will come to closing with absolutely nothing.
Try it and let me know how it goes.