Tips For Buying A Home With No Money
- Date: 2010-08-27 - Word Count: 520
Share This!
There is a popular belief that you can only buy a home if you have great credit. This is false because it is actually more difficult to rent than to buy a home. You can own a home today even if you do not have enough money.
It is not uncommon for many people to lose hope because they have poor credit status. You are simply uninformed so you must not lose hope. There are several government programs that will allow you to buy a home even if you have no cash and no credit. It is also possible for people with big credit problems to buy a home. All you need to do is to learn some creative financing techniques in order to become a new home owner.
Tips for People Who Are Cash Poor but Have Assets
Having cash, a good credit, and a perfect job are not the requirements for owning a home. This is the golden rule that you need to remember. Take note that there are no-money-down plans today and programs that allow creative financing techniques. You can easily buy a new home even if your financial standing is far from satisfactory.
It would be easier for you to acquire a property if you already have some assets. You can use these assets to obtain a mortgage loan even if you have little or no many at all. You can utilize creative financing techniques to easily convince the lender to give you the funds.
For example, if you want to buy a home worth $150,000, the logical thing that you can do is to approach a lender to request a loan for $120,000. Unfortunately, if you are going to borrow the $30,000 to pay the down payment, the lender will surely deny your application.
Borrowing money to pay the down payment is not allowed by most lenders. If the lender found out that you have borrowed money, then you will get instant disapproval. The lender will not treat you as a good credit risk because you can not even save enough money to pay for the down payment.
However, there are exceptions to this rule. You may borrow the money to pay the down payment if it is backed by an asset that you already own. Almost all lenders have no problem with this. So if you are cash poor but have some valuable assets, creative financing is best for you. You can borrow cash backed by the equity of a home. You may also have a classic car that you can make as collateral. Other valuable items in your home like high end stereo system or furniture can be used as collaterals to get a loan for the down payment.
Now that you have the cash to pay the down payment, a lender will certainly give the financing you need so you can become a new home owner.
There are also government home financing programs that only require six to seven percent investment from you. This is more good news for wannabe homeowners. You can start owning a home even if you have little money.
It is not uncommon for many people to lose hope because they have poor credit status. You are simply uninformed so you must not lose hope. There are several government programs that will allow you to buy a home even if you have no cash and no credit. It is also possible for people with big credit problems to buy a home. All you need to do is to learn some creative financing techniques in order to become a new home owner.
Tips for People Who Are Cash Poor but Have Assets
Having cash, a good credit, and a perfect job are not the requirements for owning a home. This is the golden rule that you need to remember. Take note that there are no-money-down plans today and programs that allow creative financing techniques. You can easily buy a new home even if your financial standing is far from satisfactory.
It would be easier for you to acquire a property if you already have some assets. You can use these assets to obtain a mortgage loan even if you have little or no many at all. You can utilize creative financing techniques to easily convince the lender to give you the funds.
For example, if you want to buy a home worth $150,000, the logical thing that you can do is to approach a lender to request a loan for $120,000. Unfortunately, if you are going to borrow the $30,000 to pay the down payment, the lender will surely deny your application.
Borrowing money to pay the down payment is not allowed by most lenders. If the lender found out that you have borrowed money, then you will get instant disapproval. The lender will not treat you as a good credit risk because you can not even save enough money to pay for the down payment.
However, there are exceptions to this rule. You may borrow the money to pay the down payment if it is backed by an asset that you already own. Almost all lenders have no problem with this. So if you are cash poor but have some valuable assets, creative financing is best for you. You can borrow cash backed by the equity of a home. You may also have a classic car that you can make as collateral. Other valuable items in your home like high end stereo system or furniture can be used as collaterals to get a loan for the down payment.
Now that you have the cash to pay the down payment, a lender will certainly give the financing you need so you can become a new home owner.
There are also government home financing programs that only require six to seven percent investment from you. This is more good news for wannabe homeowners. You can start owning a home even if you have little money.
Related Tags: bad credit, mortgage reviews, buy a home with no down payment
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is - Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit - Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh - Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What - Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there - A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha - How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a - Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q - Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish - News For Mortgage Loan Modification Programs
If you falling behind on your monthly payments you may be qualify for loan modification so as to mak
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som