BiggerPockets

Are the "No Money Down" Days of Home Buying Over?

Tuesday, July 20

Did you think that the "no money down" days of home buying were over?  Not according to the National Association of REALTORS®.  The NAR conducted a study of homebuyers and sellers from 2009 that showed that 20% of all first-time home buyers and 10% of repeat home buyers bought their homes with absolutely no money down (100% financing).  Typically, however, buyers are required to come up with around 8% of the sale price to purchase a home in today's market.  Last year, the historically low interest rates and tax credit incentives helped to sell 5.2 million existing homes.  With rates remaining low and down payments remaining small, it looks like there may be another 5+ million homes sold this year as well.

What do you need to get a "no money down" loan?  Active members of the military as well as veterans are able to qualify for home loans with no money down much more easily than the rest of the homebuyers out there.  With programs like the Veteran's Affairs Home Loan Guarantee Program, active and retired military members can also purchase a home with very little money up front.  Additionally, a homeowner that used a VA loan to purchase their home and ends up in foreclosure means that the homeownership reverts back to the VA.  Since the VA is not interested in managing homes, they want to sell foreclosed homes as quickly as possible.  Usually, the only way to do this is to sell it with no money down.

If you're interested in finding out how you can buy an Anchorage home with no money down, I'd be happy to talk to you about your options.  Just contact me today.  While they are definitely not the "norm", the "no money down" days of home buyer are no over!

Pauline Hofseth, your Anchorage real estate specialist

Comments

1. 

   Bryan Hancock Reply
   almost 2 years ago

   What do you need to get a "no money down" loan?

   A distressed seller that will sell to me subject-to using their loan.

2. 

   Kevin Kaczmarek Reply
   almost 2 years ago

   Kinda scary that no money down loans are still out there. I am all for helping our veterans out, yet, some of these programs need to be controlled to make sure outsiders do not manipulate the programs!

3. 

   Charles Perkins Reply
   almost 2 years ago

   Some of these government programs helped create the housing bubble. Fault is shared by many but the government was at least partly at fault.

4. 

   Alison Feliciano Reply
   almost 2 years ago

   The USDA loan offers 102% of the value.

   Charles, I agree that ALL need to own their share of the fault. Buyers need to really be educated of the true cost of homeownership.

   Mortgage & Real Estate Brokers need to care more about the buyer and less about their commission.

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