How to buy a home with no money?

get a jobHow to buy a home with no money?
Are you referring to to no money down?



Because if you don't have any justifiable income I don't see how anyone will give you a loan. But if you don't have any money down but you have income than that isn't really too much of a problem.

I bought my first house 2years ago with out any money down. My credit is good though and I have a decent job. So my debt to income ratio was favorable.

Because you don't have 20% equity, since you won't put any money down. You'll just have to pay PMI or do LPMI.

I reccommend LPMI because PMI may not remain tax deductible. I used to be but that may or may not be extended this year.

LPMI is Lendor paid mortgage insurance. They do this by giving you a slightly higher interest rate. .25%-.38% But with the way interest rates are I don't think that is a big deal.How to buy a home with no money?
Take advantage of USDA financing, no money down, no mortgage insurance, 30 year fixed rate under 6%. You'll need to have seller cover your closing costs and that can happen up to 6% worth. There are guidelines to be adhered to and you should check with your loan professional in your state that is set up to do these loans, not everyone is.
You can get a piggyback loan. Basically, you get your first mortgage, then you get a second mortgage for the down payment for the first one. Let's say you're buying a house for 100k. You want to put 20% down, so on top of borrowing the 80k for the actual mortgage, you borrow a separate 20k for the down payment. I think that's called an 80-20 or something like that. 80-10-10? I'm not sure. You'll technically be making 2 mortgage payments each month.



Check out www.bankrate.com - they have a lot of information on that site in their glossary and 'how to' section. Also, pick up a book by Suze Orman about buying real estate. She is the greatest.



Be warned though, that you have to have good credit to be able to do this, and to be able to afford whatever interest rates they give you.



The good news, is that with the real estate market in a slump, sellers are motivated to help you however they can to get you financed. Just be careful.



Make sure you read every sentence of the entire loan form - and make sure it's right when you sign it.



Also, when you buy a house with no money down (or put down anything less than 20% deposit) you have to pay mortgage insurance, also known as PMI. Be *sure* to add that into your monthly bill total, because it typically runs you about another $70 - $120 a month, depending on what you paid for the house.



Good luck!
There are mortgage options that offer 100% financing, you just have to contact a mortgage lender and see if it would be available to you based on your credit score. You can go to this website:



http://www.homefinderforum.com



To find mortgage lenders, go to thier important links section. You can also post on the forum and ask questions about buying a home f or the first time.