We all know that most of the funding for real estate transactions come from mortgage loans, as cash buyers are very rare. Most of the lending institutions require the borrower to arrange for a down payment (usually 20% of the purchase price), as a condition to secure the loan. So, an average home buyer has to make this payment and then, qualify for the home loan. In other words, you must have at least 20% of the purchase price, for securing a loan, to buy that property. Have you ever wondered about the possibility of buying real estate with no money down. Is it possible? Yes. You can go for real estate investment with no money down. This article deals with some ways for buying real estate with no money down.

‘No Money Down’ Concept

As mentioned above, borrowers have to make provision for down payments, in case of mortgage loans. Then, what is the meaning of no money down? Does it mean that you don’t have to make the down payment on a house? No. It denotes a down payment that is remitted with none of your money. In other words, the concept of ‘no money down’ simply refers to a down payment that can be made by money, which may be borrowed from friends or relatives or from a money lender. In short, you don’t have the money to make the down payment, but, you borrow it from other sources. So, the concept of ‘no money down’ actually deals with a down payment made with money obtained from other sources. It can also be termed as 100% financing, as you are home buying with none of your money. Now, let us take a look at the various ways of buying real estate with no money down. Read the rest of this entry »