There are quite a few available options out there to purchase a home in the least expensive way. Isn’t that what we all want, anyway? As you likely already know, the housing market is on fire right now! With that being said, it is unfortunate that cheap houses are not readily available like they once were. In order to embrace this changing time, we have some ideas to share with you as to how you can find cash for a down payment and closing cost if you do not have enough saved up. There are even some ways you can finagle to have very little out of pocket expense.
If you are eligible for a VA loan or USDA loan, there will be no down payment required. The requirements for both of these loans are very specific so before you get your hopes up, we recommend you find out if you qualify and what is entailed with them.
If you do not qualify for these loans, there are other loans out there that have a low down-payment mortgage. These down payments can be as low as 3% or 3.5% of the purchase price of the home. If your credit score is not substantial, do not be discouraged as you may still qualify! There are programs available where you can qualify for a grant or loan to pay for your upfront costs. Also, if you are gifted money toward a down payment from a family member, you will save a lot of money as well. (It must indeed be a gift, though…no hidden agenda of it actually be a loan as the giver must write a letter saying it is indeed a gift with no strings attached.)
Some people also get the seller or even the lender to pay for any closing costs. You really have to know what you are doing to make this happen. We would be happy to help if this is an area you might wish to pursue.
No matter which option you choose, if you do not have funds for a down payment or closing cost, do not worry…there are possibilities out there. You may just have to get a little creative!