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Buying Home with
Zero Down
We provide real estate services to buyers
and sellers in Pennsylvania (Berks County, Chester County, Delaware County,
Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in
New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester
County).
If you are looking to buy a new home but think you either don’t have the money
saved up to afford a down payment or you don’t want to liquidate all your
current assets, there is a way around this dilemma. This will inform you
of ways you can purchase a home with zero down payment.
If you find yourself caught in the endless cycle of paying your landlord’s
mortgage, why not take the time to examine what it would be like to build your
own equity in a home and stop paying rent? The general perception of many
potential homebuyers, although incorrect, is that a substantial down payment is required in order to
get you into a new home. It doesn’t have to be this way. Because of
this notion, many people believe they must save for years and years before they
can qualify for a home loan. In the meantime, these people are paying for
the real estate owned by someone else, while the home they could have bought
continues to go up in price over the years.
The Federal Housing Administration (FHA), or the Veterans Administration (VA)
and many other government programs or grant programs are available for
homebuyers with zero or little down. Hundreds of thousands of homebuyers are
realizing their dream of home ownership every year, and you can too. A good real
estate agent could even negotiate for the seller to pay for some of your closing
costs.
A well qualified real estate agent can tell you about existing lender and government
programs that can get you into a new home with no money down. With a zero down
payment program, you can begin to move into a home immediately and build your
own equity. Qualifying for these zero down payment programs can be much easier
than you think.
First, you need an excellent credit history. You should have no recent history
of bad debts, and be able to prove that you can make consistent and timely
payments on any current liabilities. You will be required to disclose all of
your current liabilities in order to determine how much more mortgage you can
qualify for. Liabilities will include such things as car payments and credit
card debts. If those are paid off, the better loan you can get.
You must have at least three years of stable employment. This is either proof
of employment for the past three years or financial statements for the same time
if you are self-employed.
You will also need to be able to demonstrate that you can afford the taxes,
insurance, and utilities that come up front on your home purchase. This will
vary depending on the amount of your home purchase.
Under the terms of a zero down payment program, there will be several types of
homes that you can get into. These properties include single-family homes,
townhouses or condominiums. It is important to note that not all homes will
qualify for the zero down payment program. An experienced and knowledgeable
REALTOR will know what properties in your area can qualify under these programs
and can assist you in finding the home that is right for you.
Buying a home with no money down can be an easy process. Consider the benefits
of getting into a home that is yours and building equity every month, instead of
renting and not having anything to show for it in the end. Plus, the interest
you pay on your loan is a tax deduction. The appreciation in value of real
estate is the basis of more wealth in this country than any other. Investment
example: a $400,000 home that appreciates 10% annually is $40,000 price
appreciation in just one
year, plus $44,000 in the second year, plus $48,400 in the third year, and so on.
That's a total accumulated value of $532,400 in three years, or $132,400 in
gain. Best of all, check with your accountant because these gain could be tax
free if you meet certain qualification requirements.
Choose your agent wisely. Working with a full-time professional real estate
agent is a must. Ask questions of your agent. Find out how knowledgeable he or
she is about houses currently for sale in your price range and also of houses
that have recently sold. Can your agent recommend a good lender that has the
reputation of excellent customer service and low rates? Does your agent ask
questions of you to have a full understanding of what you are looking for to
help you get the most home for the money?
To receive
your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
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