Most people think that you must put down 20% to buy a home, which is a myth. However, there are multiple programs that allow anywhere from 0-3% down. Many of people don’t realize that they can buy a home with absolutely nothing down.
Is it harder to do? Not at all, you just need to talk to your lender.
There are lots of options available. One option is as low as 0% down. Another option is there are grants that allow you to get 7% towards the purchase of the home. The grant is given to you and doesn’t need to be paid back. If someone does want to put some of their own money down, they can do as little as 3%. It all depends on the loan and there are lots of different options available.
Does that limit you on homes that you can choose if you don’t have money to put down? It will on some homes. The home must be move-in ready if you are going to do 0% down. But it allows you to get into a home that is move-in ready. There are other loan programs available where you can put very minimum down and then borrow extra money to fix the home and make it move-in ready, which is exciting option.
In terms of multi-family homes, such as duplexes, triplexes, fourplexes, you can even get into those with minimal money down.
Who do you talk to to figure out all of your options? Typically a lender, and if you don’t have a lender, then talk to your real estate agent. Usually your agent will get you set up with a lender that will be able to help you out with your needs. There is constantly new programs being created and coming out. There is a program where a lot of servicemen, school teachers, police officers, etc. can get into a home for as little as $500 down. And they aren’t scams. You will 100% own the home, you just don’t have to put 20% down
How do you know if it is a scam or not? If you are talking to a legitimate lender. Make sure you avoid talking to a lender that is in a different state from where you are trying to buy, or an online lender. Also, make sure the lender is reputable and that they are referred by your real estate agent. If they are not referred by your real estate agent and it is a lender that you just heard of, ask your real estate agent about them and have your real estate agent do a little bit of research for you.
All in all, you don’t have to do 20% down – there are lots of options available that many people don’t even realize they have access to.