How Can I Buy Real Estate With Little Or Nothing Down?
A number of generally available programs offer 5 percent down or less.
- • Affordable Gold — 3 to 5 percent down.
- • Bond-backed Loans — Financing available from state agencies. Generally less than 5 percent down, 1 percent down in some situations.
- • The Community Home Buyers Program — 3 to 5 percent down.
- • FHA financing — 3 percent down or less.
- • MCC Financing — “Mortgage Credit Certificate” programs available through state governments. Provides for little down and substantial tax relief.
- • VA — nothing down to individuals with qualifying federal service.
- • Piggyback financing — purchases with an 80 percent first loan and a second loan for much or all of the balance.
- • Bond-backed Loans — Financing available from state agencies. Generally less than 5 percent down, 1 percent down in some situations.
In addition to downpayment costs, buyers are also likely to need additional cash for closing costs, moving, etc.
Given the use of toxic loans and stated-income mortgage applications, many programs with little down now exist in theory but are difficult if not impossible to get, especially for those with anything but the best credit.
See brokers and lenders for details.
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