If you’re a first time homebuyer who is sick of renting and living on someone else’s property, it may be time for you to consider buying a home. Don’t be discouraged by the perceived notion that you need to come up with a significant down payment for your new property. If you know where to look, it may not be as difficult as you think to buy a home with little to no money down. Here are some options to look into before buying a home.
OHFA’s Down Payment Assistance Grant
Do research on whether or not you’re eligible for one of the grants from the OHFA. If you qualify, you can choose to take advantage of the Down Payment Assistance Grant and they will issue a grant in an amount of 2.5 percent of your home’s purchase price.
A conventional zero down payment loan can usually be available to people with high credit scores and carry higher interest rates. The mortgage loans usually require a down payment anywhere from 20 to 30 percent of the value of the house being purchased.
This type of loan is for veterans and others who qualify, and is usually the best deal around. You can get a loan for no money down and there is no requiremnt for mortgage insurance, because the cost is picked up by the U.S. government. A funding fee of 2.15 percent of the loan amount will need to be paid if you take out the loan with no money down. However, the cost can be rolled into the loan amount so you don’t have to pay it upfront.
The Federal Housing Administration is often the first place most homebuyers look when they are seeking a low-down-payment mortgage. A down payment can be as little as 3.5 percent. Unfortunately, the fees can add up over time so do your research to make sure that this is the best option for you.
Creative Zero Down Payment Options
A number of other creative purchasing options exist. Sometimes the seller of the house is willing to finance your home purchase on their own. So, instead of making monthly payments to an institution, homebuyers would make payments to the seller directly.
Buying a home with little to no down payment isn’t always easy to find. However, if you know where to look, then you have a better chance of finding the best option for you.
To learn more about buying a home with no down payment, visit here.