WHAT: An ongoing series presented by Ronda Hamming of AnnieMac Home Mortgage for real estate professionals to help agents increase their business.
Are no money down deals for real estate happening in 2019?
There are a few ways to do no money down;
- VA- for vets current and past, this loan offers 100% financing and you can roll closing costs into the loan.
- RD (Rural Developement) – an RD loan will fund 100% of the home and roll in closing costs for new construction homes in areas deemed “rural”. Many times a good up and coming area still has the designation even though it’s not far from an urban hub.
- Land contract – the seller finances you the home as the bank and accepts no cash down.
- Rent to Own – often a lease option can be had for little or nothing down.
- If you are a real estate agent, you can buy a home on FHA and roll in closing costs. You need 3.5% down. Ask for a .5% bonus and you will put down 3.5 at close but walk away with 3.5%. Basically 100% financing.
- It is perfectly legal to put a down payment on a credit card. This needs to be disclosed and the debt will count against your debt ratios. But you could get a 5% down conventional, roll in closing costs and put 5% on a credit card.
Above are many, but not all ways, to buy a home with little to no money down. I might add that in many cases, waiting a little to save 20% is a good idea. These are just ways to fund at 100% because that was the question.