What is the Safest way to buy a property No Money Down?

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How exactly do you get a property for no money down? It seems like financing that way is really risky. Can someone with some know how please explain how it happens. Do you need some loan for a down payment and then one for the main loan? TY.

I did an FHA loan for a fourplex. Seller even gifted the down payment to me so I bought a $130,000 with about $500 out of pocket for closing / appraisal costs.

If you have a good FICO score then you can do what's called an 80/20. You get a loan for 80% of the value and a 20% loan for the balance of the property. People say that you should do this to aoid the dreaded PMI, but beware! Sometimes the interest rate on the second loan is so bad that you're (financially speaking) better off going with the 100% loan and just paying the damn PMI.

In these cases the key is that your sales price has to be lower than the appraised value. MLS can give you comps to give you an idea before you seriously consider buying the property.

Also... if you're not using a RE agent when you buy then you can ask that the 3% that would normally go to the agent get gifted back to you.

I had a friend make a suggestion to me the other day, but I don't know if it's legal. He said you and the seller can write an addendum to the contract stating that you will get $X,000 for repair costs, but you just use it for the down payment. Is this actually legit / legal?