Buying a house usually involves putting a large deposit down. This is a standard requirement with many lenders, and it can amount to as much as 20% of the home's purchase price. If you do not have this much money to put down, or if you do not have any money to put down, you may still be able to buy a house and get a loan for it. Here are a few things to know if you are in this situation.
Do you qualify for a VA loan?
A VA loan is a loan that is backed by the U.S. Department of Veteran Affairs, and it is one of the only types of loans offered for people who do not have any money to put down on a house. The benefit of VA loans is that they allow people to buy homes if they are not able to save up money for a down payment. The downside to VA loans is that they are limited to people who are currently in the military or that have been in the past at some time. You must be a veteran in order to qualify for a VA loan.
There is a fee you must pay if you get a VA loan, but this is only a one-time fee, and the fee can be added into your mortgage if you cannot pay it upfront.
Are there other loan types?
If you do not qualify for a VA loan, you might not be able to buy a house with no money down; however, there are other loan types that do not require large down payments. One option you could look into is an FHA loan, which is a mortgage loan that is backed by the Federal Housing Administration.
With an FHA loan, you may be able to get a mortgage loan with a down payment of only 3.5%. This means that if you bought a house for $120,000, you would need to put $4,200 down. This is a fairly low amount needed to buy a house, and this might be an amount you can afford to pay.
Keep in mind that your ability to get a loan with no money down or very little money down will be dependent upon your situation and your credit score. If you are ready to apply for a mortgage loan or would like to learn more about your options, contact a lender today. Keep these tips in mind when looking at homes for sale.Share