8 Ways to buy a home $0 DOWN!!!
Now, more than ever before, lender and government policy favors home ownership. No where is this more evident than from the increased number of programs which require " No money down," especially for first time home buyers.


What does " No money down, " mean?


Historically, lenders have required a portion of the purchase price of a home to be paid in cash by the purchaser. However, this has proven a great barrier for many. There are many government programs and creative buying techniques previously only available to the most astute investors.





Here are 8 Ways to BUY a home with $0 Down
#1 - VA Loan
One of the first ever of such programs is more flexible today than ever before! Available to most vets as well as active duty and reserve military. Even the buyers' portion of closing costs can be included in the new loan.

#2 97% / 3%
Many new Michigan buyers will qualify for this program.  Money can be given from a third party as your down payment.  The seller usually gives the money to the third party who gives it to you.  It has to be a non profit company.  Which consists of a 97% loan as a first mortgage and a 3% gift. 

#3 80% / 20%
There are 100% loans available.  Some require no reserves.  And some require that you have backup money such as savings or 401k money in reserve.  If you have a savings or retirement account equal or greater than 5% of the purchase price - Keep the money! With this program from you will receive 100% financing if you have a reserve of 5%. or as low as 2 months of payments

#4 Lease / Purchase
This is a cross between renting and buying. I had a friend who wanted to buy a home from an older couple who wanted to sell to him. He was new to the area and could not qualify nor did he have a down payment! I suggested this method in which a portion of the monthly rent payment was credited towards the down payment. The contract did not allow the landlord to sell to anyone while the agreement was in effect, which turned out to be 10 years! At the end of the time, my friend closed with over $20,000 down which had accumulated over the 10 years! Another benefit was the price was " Locked " at the original date of the agreement and my friend had several hundred thousand in equity when he finally closed!  The monthly rental payment must be over the average rental price for the area to be counted as a down payment.

#5 IRA / 401K
This is another way government policy supports your home! Many pension funds are available for use as a down payment for new home buyers with no tax penalty. Please call for more details (313) 310-9855.

#6 Employee Loan / Credit Union
Many employers have programs by which they will advance or loan funds either directly or through the company credit union. They know a homeowner is a better, more stable, employee.

#7 - Gift From Family
A family member has promised to leave you money in the future. Suggest to them the joy they'll have visiting you in your new home purchased with her gift as the down payment!  If a parent , grand parent, uncle or aunt can give you a small gift for the down payment it will help to get you a loan at a better interest rate.

#8 - Loan from a friend
Maybe your friend can't afford to give up the money entirely but he can afford to lend it to you as a personal loan to be used as the down payment!  This money has to be in the bank usually before you start the process.   The money usually has to be in the bank for two months.

For information on Home loans please call us direct at (313) 310-9855 . We will  sit down with you and explore all your options.
 
So whether you are buying Livonia Real Estate or Novi real estate or just any Michigan home we can help you get into the home.  Call us today to see how we can help you!