As a leading mortgage lender, we at MortgageDepot understand that many people dream of owning their own home but struggle to save up for a down payment. This is why one of the most common questions we receive is, “Can you buy a house with no money down?” The answer is yes, it is possible, but it’s important to understand the options available to you.
First, let’s define what we mean by “no money down.” Typically, when you buy a house, you’ll need to put down a certain percentage of the purchase price as a down payment. This is usually around 20%, although it can be lower or higher depending on the lender and the type of loan. So, when we say “no money down,” we mean that you won’t need to put down any of your own money for the down payment.
There are a few ways you can buy a house with no money down:
- VA loans: If you are a veteran or active-duty service member, you may be eligible for a VA loan. These loans are guaranteed by the Department of Veterans Affairs and allow you to buy a home with no down payment.
- USDA loans: The United States Department of Agriculture offers loans to low- and moderate-income borrowers in eligible rural areas. These loans also require no down payment.
- FHA loans: While FHA loans do require a down payment, it can be as low as 3.5% of the purchase price. Additionally, the down payment can come from a gift or a down payment assistance program.
At MortgageDepot, we can help you explore these options and find the loan that best fits your needs. Our team of experienced mortgage professionals can guide you through the application process and help you understand the requirements for each type of loan.
It’s worth noting that while buying a house with no money down may seem like a great option, there are some downsides to consider. For example, if you don’t put any money down, you’ll have a higher loan-to-value ratio, which can result in higher monthly mortgage payments and higher interest rates. Additionally, you may be required to pay for private mortgage insurance (PMI) if you don’t put down at least 20%.
Overall, while it is possible to buy a house with no money down, it’s important to weigh the pros and cons of each option and make an informed decision. At MortgageDepot, we’re here to help you navigate the process and find the loan that works best for you. Contact us today to learn more about your options and how we can help you achieve your dream of homeownership.
Connect with one of our loan consultants to learn more.