How to Buy a House with No Money Down

If you grew up watching television, you’re probably familiar with no money down real-estate touts such as Carlton Sheets. This guy has been on television for many years preaching about no money down real-estate in an attempt to get viewers to purchase his training course. Recently he began offering television viewers a ten-dollar trial of his program. Those who take him up on the offer will later be billed a couple hundred dollars for the program, unless they first go through the difficult cancellation and return process.

Touts such as Carlton Sheets make even more money on the back end, because after their programs are sold, the buyer is then bombarded with sales calls and letters from sister companies. Generally speaking, there is nothing contained in any of these real-estate training programs that could not be found online for free, or by grabbing a book from your local library. These guys make their money by claiming the reason everyone doesn’t buy with no money down is because they “don’t know about these programs”, when the real reason is that it is difficult to purchase property through this method.

When looking for how to buy a house with no money down, use Google, Yahoo or Bing to search the internet for information. Also, make some contacts of your own. One good contact would be a realtor, who has done no money down sales before. Another good source of contacts would be bank agents representing a lender with a 100% home financing program. Here you’ll be able to ask questions to see if you can qualify for such a loan.

Closing Costs

The most difficult part of buying a house with no money down can be closing costs. Even when going with a lender offering 100% home financing, there are still closing costs which must be paid separate. The way to get around this is to do a contract where the seller (home owner) pays all of the closing costs. Let’s say for example a $200K assessed home is for sale for $190K. You might offer the owner the full $200K, but require that he pays the closing costs. This is a way you can cover closing costs and get the house with no money down.

No Money Down Financing

Well, don’t expect to hear this on a late night infomercial about how to buy a house with no money down, but the truth of the matter is: there are very few lenders these days willing to do 100% home financing. Of course some do exist, and this becomes even more possible when you’re purchasing the home for less than its assessed value.

The most popular no down payment loan is one made to US veterans. If you’re a veteran and can get a Certificate of Eligibility from the Veterans Association, you can apply for a VA Loan that requires no down payment. The lender can also cover part of the closing costs, and you can use the same method we covered above to get the buyer to cover the rest.

Taking Over Payments

This is a method nearly any average Joe with decent credit can use to purchase a home with no money down. If you find a recent buyer who decides they want to move, it may be possible to take over their payments. Of course, you’d want to do this legally by having the bank transfer the loan into your name, and you’ll need to meet the qualifications to do this.

For more information on how to buy a house with no money down, continue to navigate our website by clicking on relevant links of interest.