Many mortgage banks and lenders are motivated to find people to take over the mortgage payments of a non-performing asset. As discussed in our article about REOs, banks and lenders are extremely worried about having too many homes in their portfolios.
This is an historic opportunity for people to achieve the American Dream; home ownership for little or no down payment. Many people assume that the increase in foreclosures nationally is entirely a negative event. The reality is that people can start to afford to purchase a home that only months ago might have been out of reach due to the need to make a large down-payment.
One program that allows for purchasing a home with no money down is the $10,000 Down Payment Gift Program or the down payment of 5%. (Please note that differences between state-to-state and bank-to-bank vary).
This program is available to all home-buyers anywhere is the United States. No income restrictions apply and this program is available to any home buyer, not just first-time home buyers like other programs. The only restriction of the Down payment Gift is that investors are not eligible unless it is for the purchase of a multi-family home, apartment or condominium and the investor lives full time in one of the units. This program is also available for new construction homes.
The Down payment Gift can be used on any FHA or HUD home. HUD homes are based on need, whereas an FHA home is not based on need. Each state has their rules and limits. It is important to check with your lender to confirm requirements.
The only restriction is that a Down Payment gift cannot be used to pay off any outstanding debts or judgments. It must be used for the actual Down Payment.
A second program that is better known for purchasing a home with zero money down is through the Veterans Administration (VA). This program is offered to all active and retired members of the United States armed forces. This also includes unmarried widows of servicemen that are POW's or MIA's. All branches of the armed services are eligible for this program, including the US Navy, the US Army, the US Coast Guard, the US Air Force, and the US Marines.
Both the Down Payment Gift program and the VA program are two excellent ways to achieve the American Dream of Home Ownership.
Start your search today to find real estate bargains that you can buy with little or no money down!