How to Buy a Home With ZERO Down Payment

Rob Kosberg asked:

Many people today are under the false assumption that they need tens of thousands of dollars for a down payment to buy a home due to the sub prime fall out. Nothing could be further from the truth. A little known HUD approved and RESPA compliant program allows any buyer to purchase a home up to a $729,000 purchase price (in some areas) for absolutely NO MONEY out of pocket.

Here is a step by step process to BUY a home with ZERO down payment and ZERO out of pocket expenses.

Step 1) Find an FHA/VA approved Mortgage Planner that specializes in working with a DPA. A DPA is a down payment assistance program. One of the more popular DPA’s is the Nehemiah program. Nehemiah has assisted in funding over 275,000 real estate transactions since 1998.

Step 2) Get pre-approved for a DPA with a certified specialist. Credit need not be perfect to qualify. In fact, a score as low as 550 is acceptable for FHA financing. The most important aspect of qualifying for the program is income verification. This program is for any buyer (first time or otherwise) of an owner occupied residence.

Step 3) Begin your home search. FHA limits have been raised to as much as $729,000 in some areas such as Los Angeles county. However, most areas go up as high as $423,000. For many areas $423,000 buys much more than a starter home in todays market which makes home shopping a snap.

Step 4) Negotiate with your seller to participate in the DPA. The ZERO down home loan program requires the sellers participation to fund the closing costs and down payment. Fortunately, in this market environment sellers are more flexible than ever. The seller will be primarily concerned with his/her net from the sale. So many times your offer will be closer to the list price since you will be requesting a 7-10% contribution for down payment and closing costs.

Step 5) Go to closing and be AMAZED! I’ve seen individuals walk away from closing with a 6.25% 30 year fixed rate mortgage, a few hundred dollars back ot them and a new HOME! You can do it too.

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