How to buy a house without closing costs or down payments?

Buying a home always involves some out‑of‑pocket expense, but there are a few ways to reduce or eliminate the need for a large down payment and minimize closing costs.

• **Zero‑down financing.** VA loans for eligible veterans and active military members and USDA Rural Development loans for properties in designated rural areas are two true "zero‑down" mortgages. Some credit unions and state housing agencies also offer low‑ or no‑down programs for first‑time buyers with good credit. Expect to meet specific eligibility requirements.

• **Down payment assistance programs.** Many state and local governments, housing finance authorities and nonprofits offer grants or forgivable second mortgages to cover a portion of the down payment and closing costs for first‑time or moderate‑income buyers. Your lender or a HUD‑approved housing counselor can help you find programs in your area.

• **Seller and lender credits.** You can negotiate for the seller to pay some or all of your closing costs in the purchase contract. Lenders may also offer "lender‑paid" closing costs by charging a slightly higher interest rate. These strategies roll the costs into the overall transaction rather than eliminating them.

• **Rolling costs into the loan.** On certain loan types, you may be able to finance some of the closing costs, though this will increase your loan balance and monthly payment.

Even if you qualify for zero‑down financing, you should still budget for earnest money, appraisal and inspection fees, moving expenses and an emergency fund for home maintenance. Talking with a trusted mortgage lender and a knowledgeable real estate agent will help you understand which programs you may qualify for and whether using them makes sense for your situation.

Depends. VA loan for example can be no money down, talk to local lender about types of loans you qualify, amount of downpayment, etc. Here in Tucson, AZ it is an extreme seller's market. Buyers should expect to pay their own closing costs. Couple of years ago I would get most if not all closing costs paid for the buyers I represented by the sellers. No longer the case in a hot, seller's market. Best of luck. Spirit

Hi Timothy, great question. This is a common and frequently asked question. Try not to rely on word of mouth or promotions for the answer. If you have not yet done so, you will get the best and most accurate answer from a mortgage lender. The answer may be yes, no or yes to half the question and no to the other half. It depends on several variables including, personal, financial details, timing, location and what the seller is offering. It also may depend on if you or another family member are Veterans and your eligibility concerning the VA Loan and benefits. If you need help finding a lender, please connect with me so I may assist you.

Yes, it also depends on your lender, some lenders offer great incentives and also buyer credits. - Alfred

VA Loan

you would have to add it to the purchase price and have it deducted at closing.

Yes, some people buy a house even if they don’t have much money saved.
There are special loans that help you pay less at the start. Some people also get help from family.
Yet, remember that buying a house still requires a monthly payment. It’s a good idea to talk to a real estate agent. They can help you understand everything before you make a sale.

Yes, it’s possible to buy a home with little to no money down and sometimes without paying closing costs. Options include VA loans (for veterans and active military), USDA loans (for eligible rural areas), and FHA loans with down payment assistance programs. In some cases, sellers can also give credits toward closing costs. Every situation is different, but with the right loan program and negotiation, buyers can get into a home with very little out of pocket.

In the Myrtle Beach area there are two ways to buy a home without making a down payment. The first is using a qualified V.A. Loan. If you served in the military you may be eligible. The second is to apply for a USDA loan which is available for many homes in our area.

This is a very complex question that should be answered by a lender. My opinion YES! There are many factors that have to be considered. First your credit score, then your DTI (debt to income ratios), then some rural towns have even more incentives. Many programs available you just need to fit in the right box. Talk to an expert. Google them and ask for references. The market is a sellers market in CA where I sell property we are not seeing any sellers incentives currently. Call your favorite REALTOR and see who they recommend as a lender.

There are govt. loans call Rural development that is zero down but you will have to have the seller cover the closing costs to be true zero down. There are other local bank loans that may have this option.

Yes, this can be true for some buyers with certain loans. However there are many loans you can get with a small down payment.

Some types of loans will allow a seller to pay up to 6% of the purchase price back in buyer's closing costs, pre-paids and points.