First–Time Homebuyer Loans With Zero Down
It can be difficult and confusing for some homebuyers to determine how much they can afford. The best route for each buyer will vary by their situation and personal preferences. Here are four main issues all homebuyers should consider relating to their down payment:
What are your down payment options?
What is the long-term cost of a lower down payment?
What are the benefits of a lower down payment?
What other personal considerations do you need to account for?
The main costs of a lower down payment are higher interest rates and higher mortgage insurance premiums. These downsides may cost you more in the long-run, however, the first few years of your mortgage loan are normally tax deductible, and you could refinance things down the road once you have greater liquidity.
Benefits of Lower Down Payments
Higher rate of return (your property likely will appreciate over time, unrelated to your down payment)
Opportunity cost (smart investors can make more money by investing in other things than a bigger investment in their home)
How to Buy a House with No Money
Apply for a zero-down VA or USDA loan
Use a down payment assistance program
Have a family member gift you a down payment
Get the seller to pay your closing costs
Get the lender to pay the closing costs