Can I buy a home without having a down payment?

Is it possible to buy a home without any money for a down payment? This is one of the most common questions asked, especially by first time homebuyers. Yes it is very possible to buy a home without the availability of any money for a down payment. In fact, in 2005 almost half of the first time home buyers that purchased homes bought a home without having a down payment and using a 100% financing program.

There are many different options for buyers looking for zero down programs. Some offer true 100%financing by allowing you to borrow up to 103% or 107% of the purchase price to cover closing costs. Others allow gifts from family members to cover all or a portion of a down payment.

Even if you are approved for 100% financing, there are still other costs to consider. There will be closing costs and things like homeowner's insurance and home inspections. You may be able to get the seller to agree to pay your closing costs. They are generally allowed to contribute up to 6% of the purchase price. Make sure you ask your loan officer how much cash you will need to close.

When a seller pays your closing costs, there are usually limits as to which closing costs they can pay. Most of the time, the seller can only pay for non-recurring closing costs, and you will still be required to pay the rest.

There is a downpayment assistance program that I am involved in that helps home buyers to get downpayment and closing help. If you want to know more, please send an email to oncoursellc@bellsouth.net.