Business — September 25, 2018 at 7:31 pm

How to Buy a Home with No Money Down

Buying A HouseWhile many people aspire to own homes in Ogden, the biggest barrier to home ownership is usually the mortgage down payment. However, what most people don’t know is that you can own a home with no money down!

Owning a home without raising a deposit was nearly impossible in the past. While having a bad credit score is disadvantageous, it might work to your advantage in this case. Here are some ways to own a home with no money down.

Hard Lending

You can take advantage of bad credit home loans in Ogden, which only require a 3.5–10% down payment but cover closing costs. Your property will act as security for the loan, meaning that you don’t need any money to buy the home.

US Department of Agriculture Loan

This loan is meant to encourage people to settle in rural (and sometimes suburban) areas and take up farming for food production. You have to purchase a house in a rural area to be eligible for this loan. The loan requires zero down payment and can be issued through a local lender or directly from the USDA.

Private Loans

The 100% loan is usually from a private money lender that covers the entire cost of buying a home without requiring any down payment. You might, however, need to pay the closing costs in some cases.

This kind of loan typically uses the property to secure the loan and you get your deed once you finish payment as the loan is charged to it.

Veteran Loans and FHA Loans

VA loans are specifically for veterans, and they require zero down payment. All you need is proof that you served in the military. FHA loans, on the other hand, are federal loans that are accessible to people with bad credit scores.

While you might have to pay extra as compared with a regular home buyer when you borrow from private lenders, you will end up buying a house with a lower down payment amount. The bottom line is, you will have a home to call your own — just be sure to always read the fine print in the terms of the loan.