Buy Real Estate With No Money Down – Mortgage Alternatives

It is possible to buy real estate with no money down, provided you pay attention to what you are doing and spend some time researching purchase options.How To Buy Real Estate With No Money Down

The easiest way to buy with no money down for a mortgage is to borrow the down payment from another source.

This can be done with a conventional commercial loan, a short-term mortgage linked to the house you are buying, or a home equity loan on a property you already have.

Some people say you can borrow the broker’s commission for a short time to use as the down payment, but finding a broker to cut this kind of deal will be very hard to do.

Want to learn how you can make big profits from bargain real estate? Would you like to buy homes for pennies on the dollar? Or earn double-digit interest rates? Learn how to secure your financial future with this FREE mini class today!

Buy Real Estate With No Money Down – Do Your Research

Assuming an existing mortgage is not an excellent way to buy real estate with no money down. This is not a slide-right-into-place deal though. It requires research on your part. Two things you need to ask are:

  • Does the mortgage have a due-on-sale clause? If so, you can’t assume the mortgage. When the property changes hands, the mortgage must be paid off.
  • Will the bank let the mortgage change hands? You and the seller need to negotiate with the bank to make this happen. You are going to need good credit. If the seller is in a short-sale position, then the lender will have additional motivation to keep the mortgage as-is. They won’t lose money.

If the owner can sell it outright, you can work with the owner to arrange to buy real estate with no money down. The two of you decide how the loan will be set up.

Buy Real Estate With No Money Down – Lease to Buy Option

A related sale, a lease with an option to buy, is a popular alternative for people with less than great credit. You will need to decide how much of the lease payment will go toward the purchase of the house. In either of these scenarios, get everything in the writing and have a real estate sale expert look over the paperwork.

Buy Real Estate With No Money Down – Down Payment Alternatives

The down payment amount is negotiable. It really is. If you are trying to buy real estate with no money down and find a motivated seller, you may be able to have them cover the down payment. This may not be common, but it does happen.

If you have professional skills, you may be able to swap some labor and materials for the down payment. The barter economy is growing rapidly. This doesn’t only happen with a fixer-upper, so you don’t necessarily need building skills.

Bookkeepers can trade accounting advice; lawyers can offer legal expertise; doctors can trade medical services. If you have professional skills, someone is willing to barter with you for those abilities. If that person has real estate for sale, you’re set.

Buy Real Estate With No Money Down – Buying With a Partner

Buying with a partner can be an option. In this case, the partner comes to the deal with the down payment money. It can be a loan or an outright investment in the property.

This works well for commercial property. You buy real estate with no money down and your partner agrees to take a percentage of the income the property generates.

Buy Real Estate With No Money Down – Tax Sale/Auctions

One of the best ways to buy real estate at a bargain price is through a tax sale/auction. It can be a tax lien certificate or a tax-defaulted property deed sale. No matter what it’s called, you still get the chance to buy real estate for pennies on the dollar without having a down payment.

Buying real estate this way is not guaranteed, because the owner may have time to redeem the property by paying off the past-due property tax amount plus interest to you.

This method also requires you to research the tax-defaulted property carefully. A great resource for this is Zillow.

All the inside secrets and how you can take advantage of this 200-year program are explained in a detailed 6-set series of instructional videos, FREE at tedthomas.com

Want to learn how you can make big profits from bargain real estate? Would you like to buy homes for pennies on the dollar? Or earn double-digit interest rates? Learn how to secure your financial future with this FREE mini class today!

Recommended Posts