Saving up enough money to make a down payment on a home can be next to impossible for many consumers. Because of this, there are a variety of programs available to assist people who are interested in buying a home, but just do not have enough money available for a down payment. There are quite a few options available for consumers without money for a down payment. You can either try to find a down payment assistance program in your area or you can try getting approved for 100 percent mortgage financing, thus eliminating the need for a down payment.
Buying a home with a 100 percent, zero money down home loan is one option for those consumers who do not have enough money to make a down payment. According to a survey done a couple of years ago by the National Association of Realtors, 25 percent of all buyers financed 100 percent of the purchase price, and 42 percent of first-time home buyers bought with no money down. These numbers have increased even more over the course of the last couple of years as well. Even with lending guidelines tightening up due to the recent real estate market woes, there are still a variety of no money down home loan programs available at this time. Therefore, having money for a down payment is not required and many people can still buy homes without having a down payment available.
Down Payment Assistance programs can be found by using a variety of different search methods. The first place I would recommend is to call your city and/or county government and family services offices. Many times they will be able to direct you in the right direction to find down payment assistance. Contact HUD at (202) 708-1112, or find your local HUD office online at http://www.hud.gov/ and see if they can provide any assistance or give you any suggestions. You can also try doing a Google search using your city or county name followed by the words "down payment assistance." The three links below contain a comprehensive list of down payment assistance programs that are listed alphabetically by state. If you are still unsuccessful there are a number of down payment assistance programs that are offered in conjunction with the help of the home seller of the house you are interested in purchasing. AmeriDream, Nehemiah Program, and Partners In Charity, just to name a few, are 3 of the most popular down payment assistance programs out there. These companies are nonprofit organizations that provide help to many families by creating a pool of funds for a down payment from the seller to you, the buyer. Down Payment help is out there, sometimes it just takes a little time, research, and extra effort to find the best option for you.
Thus, consumers have many options to buy a home with little to no money down. Be careful which program you decide on because not all lenders will permit down payment assistance programs and not all lenders will lend to people on zero money down home loan programs. Therefore, even if you do not have a lot of money saved and put away to use for a down payment, chances are there is still a way for you to buy a home.
The author of this article, Dave Zwierecki, is the President of First Security Financial Service and has over 10 years of experience in the credit, mortgage lending, and home improvement fields.