How to Buy a Home with Little to No Money Down
Hey everyone, Jonas Helbert from Streetlight Realty here! Today, I’m excited to share some insights on how you can enter homeownership with minimal savings. This info is especially helpful for first-time buyers, but it’s applicable to anyone looking to purchase a home again.
Understanding the Costs: When buying a home, the two main costs are the down payment and closing costs, which include various fees associated with finalizing your home purchase. Today, we’ll explore how you can significantly reduce or even eliminate these costs.
Loan Options for Low Down Payments:
- Conventional Loans: Available with as little as 3% down.
- FHA Loans: Requires only 3.5% down and is more flexible with credit scores.
- USDA Loans: No down payment required, but restricted to certain rural areas.
- VA Loans: No down payment required, available only to veterans and active military members.
Addressing Down Payment and Closing Costs:
- Down Payment Assistance: There are programs available year-round that can help cover most, if not all, of your down payment. For example, FHA grants can cover up to 3% of a 3.5% down payment.
- Closing Costs: These can sometimes be negotiated with the seller to pay or covered through creative financing options like premium pricing with your lender, which adjusts your interest rate slightly to provide funds for closing costs.
Real-Life Example: Last year, I assisted a buyer in purchasing a home valued at $214,700. We secured an $8,432 grant and got the seller to contribute $4,800 towards closing costs. The buyer only needed to bring $109 to closing — a fantastic demonstration of how accessible homeownership can be with the right strategies and assistance.
Final Thoughts: Buying a home with little to no money upfront is possible with the right knowledge and resources. If you’re looking to purchase a home and are concerned about the financial requirements, don’t hesitate to reach out. I’m here to help guide you through the process and find the best financial solutions for your situation.
To Return to our Home Buyer Video Series click: HERE
For all of our Home Buyer Education and Resources click: HERE
Contact Jonas Halbert at Streetlight Realty for More Information:
- Phone: 937-626-4181
- Email: jonas@streetlightrealtors.com
- Website: streetlightrealtors.com
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Remember, whether it’s your first or next home, we’re here to help make your homeownership dreams a reality with as little stress as possible.
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SLR Experts
Streetlight Realty is located in Washington Twp, OH, and serves the entire Miami Valley. Whether you are looking to buy or sell real estate, we have experts who can assist you in the process. You can call Jonas Helbert at 937-626-4181 or Katie Masters at 937-901-8177 with any Real Estate questions. We are here to help!