How to Buy a House with No Money

You can’t buy a house if you don’t at least have the funds for a healthy deposit, right? Wrong…! Not only is it absolutely possible to purchase a property without putting any money down, but you can do it time and time again… Hello, property portfolio, and all the potential income this can bring. 

Is it risky? Of course, nothing worthwhile comes totally risk-free. But with the correct advice and the right money lender as a backer? Well, it’s certainly not as chancy as, say, stock market investments can be.

So, let’s delve a little deeper into how you can purchase a house with no (or a very small) down payment.

No Money? No Problem… The Savvy Purchaser’s Guide to Property Ownership

• The live-in option: how to buy a house with no money as your primary residence
• The investment option: how to invest in property with little or no capital

The live-in option: how to buy a house with no money as your primary residence

Understanding how to buy a house with no money differs depending on whether you’re looking to purchase a home to live in or one for investment. Let’s first focus on the former.

To buy a residence to live in without making a down payment means getting a special type of home loan that’s either backed by the government or a private lender. There are two main types of government loans:

• A Veteran’s Affair Loan (VA Loan

and a

• U.S. Department of Agriculture Loan (USDA Loan).

To qualify for a VA Loan, you’ll need to be either:

• A veteran or currently serving in the military
• Be a member of the National Guard
• Be a member of the Reserve Forces
• Be the surviving spouse of a veteran

There are also other requirements, based around when and where you served. You can check all these out on the VA.Gov website.

A USDA Loan offers several ways to purchase a home with low-interest, fixed-rate borrowing. These primarily exist to help low and moderate-income US citizens purchase their own homes. These come under two banners – the Section 502 Direct Loan Program and the Section 502 Guaranteed Loan Program. Both require you to buy and live in an eligible rural area.

You can also find no down payment private lenders, such as the Navy Federal Credit Union and North American Savings Bank.

The investment option: how to invest in property with little or no capital

When it comes to investment properties, there are several options to help you buy without putting any money down. Whether you’re planning to fix and flip or follow the “buy, rehab, rent, refinance, repeat” model, there are varying loan options.

These include:

• DSCR Loans: Standing for debt service coverage ratio, the money is lent and guaranteed by the potential rental income that the property will bring.
• HELOC Loan: A home equity line of credit loan uses the equity in another property (usually your primary residence) as collateral. As you repay the loan, so your credit is reloaded – a little like a credit card.

In addition, if you’re looking to fix and flip, you can borrow with only a minimal down payment (typically 90% of the purchase price) to include 100% of the renovation costs.

Contact BRRRR Loans Today to Discuss the Reality of How to Buy a House with No Money

Investing in property is no longer solely the realm of the uber-rich. Regular folk—just like you—are quietly purchasing properties across the nation and reaping a very nice income from them. If you’re considering taking your slice of the lucrative home rental market, then you need to speak to an expert. Or perhaps you’ve already started to build your property empire and are looking to expand? Either way, there’s no company better suited to help make your dreams come true than BRRRR Loans.

We’re one of the country’s leading lenders for property investors, thanks to our no-nonsense approach, low fees, low interest, and fast closing. At BRRRR Loans, we believe that property purchasing should be transparent and simple to accomplish. 

Head to https://www.brrrr.com to find out more and give our friendly team a call today.