Answer for "How do you buy a house with no money?"

Donald A. Miller real estate agent
  Home Buyers Marketing II, Inc.

You saw a property you love and want to buy it, but you have no money to do that. So you ask us how do you buy a house with no money.

Well, that’s a funny question… if you have no money at all, the only way you’re getting the house is by stealing it, and we don’t recommend that. Let’s adapt that question: in a way, most people *don’t* have enough money to buy a house; that’s why mortgages were invented. So you don’t have to pay $300,000 (or whatever the value of the house is) at once; instead, you can fraction this amount in installments.

So the question should be how do you buy a house with no money down. Because although you pay fractions, you have to pay a bigger initial installment – called down payment – so the Lender has your risk reduced, and, yes, some people can’t even afford that, so how can one buy a house with no money down? Is it even possible?

Surprisingly: yes.

First, we recommend going deep into and learning everything you wanted to know about a down payment, as there are other types of it besides the regular “here’s a large amount of cash”. There are other ways to guarantee the lender will be happy.

But aside from that, here are some mortgage options that might be good for you, depending on your specific case:

USDA Loans – does the property in question concerns rural development? If so, the US Department of Agriculture provides zero-down loans for low-to-moderate income families. And it has the best mortgage insurance premium (MIP) around. And don’t think that because your home is not a farm, you can’t benefit off of it. Most areas outside the major cities are considered rural areas to the USDA and are eligible for the loan. It’s really worth it to take a look into that.

VA Loans – are you a military veteran? VA mortgage also has no money down. And better yet; it does not require mortgage insurance, which will save you even more money. In fact, VA loans are one of the most affordable mortgage program available.

FHA Loans – Federal Housing Administration loans do have a down payment but it’s much lower than what you will normally find out there with private mortgage companies. The key here is having the best credit score you can reap the best benefits of the FHA loan, including an adjustable rate mortgage (ARM).

Additionally, if you’re a first-time home buyer, there are some first-time home buyer down payment assistance programs that can reduce the amount of money down needed.

So, to sum it all up: there is no answering to “how do you buy a house with no money”. But there are several ways you can buy a house with *not a lot of money*.


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