How To Buy A House With No Money Down

In this day and age there are three ways on how to buy a house with no money down. Actually there are only two way but the third way only requires $100 down so in essence it really is no money down.

Here is the first way to on how to buy a house with no money down. You can use the USDA Rural Development Loan. This loan is truly zero down and is a conventional 30 year fixed loan. But there are some restrictions to this loan.

The first restriction is that you will be limited on the amount of household income you can be bringing in. This limitation is on a per county basis and is also broken down on the size of your family. For example in Portland Oregon the limitation for a family of 1-4 people is $80,500. With a family of 5+ it is $106,250.

The second restriction is that the home must be located in an area that the USDA deems rural. The USDA website has a form that will allow you to put in an address and find out if the home is located in a rural area or not. Just so you know, the home does not have to be located out in the middle of nowhere. In fact 90%+ of the US is deemed rural.

The second way on how to buy a house with no money down is to use the VA loan. However, you must be a veteran or on active duty to use this loan. Assuming you are a veteran you can buy a home anywhere you choose. The only limitation is that the loan amount can not exceed the maximum conforming loan limits, which for most areas is $417,000.

The third which has already been mentioned requires $100 down. As far as I am concerned that is close enough to consider this a nothing down home loan.

This loan is an FHA loan and requires that you buy a home that HUD currently owns because the home was foreclosed upon and HUD insured it. There are plenty of these homes available. You can simply go to the HUD website and view the homes for sale in your area.

All three of these loan options allow for the seller to pay all of your closing costs up to 6% of the purchase price of the home. The 6% is normally more than enough to cover all of your closing costs. Since you wanted to know how to buy a house with no money down this tip makes it even better because you literally will not need any money at all to buy a home.

All of these home loan can be gotten through banks, mortgage brokers and credit unions. You first step should be to call one of these lenders and get the process started. They will be able to guide you through the entire process.

There are several options left to buy a home with zero down. Hopefully this simple guide has given you the insight and realization on how to buy a home with no money down.

Of course you can learn more about the USDA Rural Development loan as well.