Free Report: How To Buy A House With (Little Or) No Money
A Free Report, Courtesy of The Korn Team
Many people never buy the home of their
dreams simply because they don’t think they have enough money for the down
payment. They’ve been told through the years that they need 10 or 20
percent of the purchase price in order to buy a home. Well, this simply
So why have so many real estate companies told them
Quite honestly, it’s because selling homes to people with
10 or 20 percent down is easier than selling homes to people who have
little or no money for a down payment. Most real estate sales people would
rather go after the "easy sale" than try to help people who have special
As a By Referral Only Real Estate Consultant, my mission is
clear: To Help People. That’s why we’ve created this special report and
sent it to you with no obligation.
This report is specially
designed for people with good credit and a good income, but who just don’t
have much money for a down payment.
Option 1: FHA
Although this isn’t a "No Money Down" option, the FHA
loan is by far one of the best alternatives for people who want to buy a
home and don’t have much money to put down. With an FHA loan, you could
put down as little as 3%. Plus, FHA loans are easier to qualify
Now, 3% may seem like a lot to come up with, but many people
find that when they put their minds to it, 3% is actually possible. While
you can’t "borrow" the 3%, you can get a "gift" from a family member,
borrow from your 401k, or sell some "stuff" you have lying around. At the
end of this report, we’ve included a special section with great ideas for
raising this small amount required for an FHA loan.
FHA loans do
have requirements and restrictions. Not all townhomes and condos qualify,
and there is a maximum loan amount you can get. But if you’ve been
dreaming of a new home and think you might be able to "scrounge up" 3%,
this is a great way to go.
Option 2: M.H.D.C.
The Missouri Housing Development Authority is a
first-time homebuyers’ program that offers below-market, fixed-rate, 15-
or 30-year loans. There are restrictions as to maximum household income,
as well as the price of the home you are buying.
disadvantage of this loan is that if you sell the house before the end of
the loan term, you may have to "pay back" a portion of the subsidy used to
get the lower interest rate. However, if you’re a first-time homebuyer,
this may be an option to consider.
Option 3: Special Loan
Special loan programs come and go quickly. There is
one available right now that will allow the seller to provide the 3% down
payment required for a home loan. That means no money out of your pocket
if you know how to negotiate with the seller! There is another program
right now that requires only 2% including closing costs! Wow! That’s
practically the same as "no money down!!"
So, how do you find out
what type of loan programs are available for you right now? The best way
is to work with a great mortgage broker who keeps up to speed on these
special programs. If you don’t know of one, we work with at least 3 such
mortgage professionals and we would be happy to refer you to one of them,
depending on your particular needs.
Option 4: Owner
Owner financing means exactly that: the owner (or
seller) finances a portion of your home purchase. For example, you might
borrow 80% of the value of a home from a lending institution, and "borrow"
the other 20% from the owner. In this situation, the owner "carries back"
a second mortgage.
Owner financing can be advantageous, especially
to investors who buy up properties and then rent them out. For the average
homebuyer, however, owner financing is difficult to find and requires some
tricky negotiating. Even after successfully negotiating a deal, it
requires some detailed work by qualified attorneys in order to protect the
interests of all parties involved.
While you shouldn’t rule out
owner financing, keep in mind that by looking for someone who is willing
to help finance your purchase, you severely limit your choices. There are
a lot of houses for sale today, but not a lot where owner financing is an
Option 5: Lease-To-Own
With a lease-to-own,
you essentially lease a home, but make larger payments in order to begin
accumulating a down payment. For example, if a house would normally lease
for $800, you might lease it for $1,000/month, with $200/month going into
a special account. At the end of a specified period, you buy the home
using the money in that special account as your down payment. However, if
you decide somewhere along the line not to purchase the home, all of the
money in the special account then goes to the seller.
Think of this
option as renting with a forced savings account. If you can find someone
willing to do this, it’s not a bad option. However, most people who are
selling their homes need their money out of it in order to buy their next
home, so finding someone who is willing to lease to you may prove more
Where To Begin
Now that you have 5
good options for buying a home for little or no money down, where is the
best place to begin?
The first step is get pre-qualified. And the
best way to get pre-qualified is to find a real estate professional who is
dedicated to helping people like you get into the home of your
We’ll do more than help you get
Financing is only the first step in the home-buying
process. We are dedicated to helping you through the entire process,
delivering world-class service all along the way. We can help you find the
right home, negotiate the right terms, and then make sure that you
actually get to the closing table. It’s all part of our Preferred Buyer’s
Program, which you can join for FREE! That’s right, it won’t cost you a
dime, because all of our fees are paid by the seller!
If you’d like
to know more about your financing options and would like to be part of our
Preferred Buyer’s Program, please call us today at (816)
224 KORN (5676).
Simple Ideas For Raising Money For A Down
- Have a garage sale. You’ll be surprised
how much money you can raise this way, especially if you’re willing to
give up some of the junk you’ve been hoarding for years!
- Raid your savings. Even if you’ve been
trying to keep a little stashed away, this is important! If your kids
have a savings account, ask them if you could borrow from theirs as
- Borrow from your retirement fund. Many
retirement funds (401k, IRA, etc.) have provisions for you to borrow
from them for important reasons. This counts as an important reason!
Check with your plan administrator or your financial advisor about this
option! The nice part about this is that as you repay your loan, you pay
the interest to yourself!
- Ask your family. This is probably the
hardest thing for some to do, but you might be surprised at how willing
a family member would be to help you buy a house, even if they’ve said
"no" to you before when you tried to borrow for other things! If you do
this, you’ll need a form for your banker stating that this is a gift and
not a loan. (Yes, you can still repay your family member. It just can’t
be a formal loan!)
- Sell something. If you look around your
house, you might find items that have pretty good value, but that you
haven’t used in a long time. An old coin collection; an old musical
instrument that no one plays anymore; an extra freezer you don’t really
need; a second (or third) car you could do without. Often, the cash from
selling these items can add up quickly!
- Win the lottery. Hey, somebody’s gonna
win! Might as well be you!
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Copyright 2001 The Korn
Team & By Referral