How To Buy a Home in 2019 With No Money Down

Is it really possible to buy a home in California with the 4th largest homeless population, with a no money down home loan? The quick answer, yes. There are income limits and FICO score requirements so it doesn’t come without stipulations, however, there’s a chance you may qualify.

How Buying A Home With No Money Down Can Give You Instant Equity

From the moment you make your first payment, a portion (very small) goes to principal and reduces your overall balance. This builds equity. Equity that you may one day want to cash out by refinancing, selling the property or taking out a Home Equity Line of Credit. It builds your net worth and can cash flow for you down the road.

Time builds equity. As the market ebbs and flows so does the equity in your property.

As you own the home, equity continues to grow in your property value. The average home price in California in 2013 was roughly $350,000 compared to 2018 at $574,000. Click here for housing statistics in California. Start now, earn equity while you pay your mortgage loan.

As you pay down principal, it becomes equity in the property you have to cash out.

Equity can be cased out through a refinance, home equity line of credit or selling the home. Many homeowners fund all or part of their retirement on home equity. Pay-off or consolidate debt, use for home improvement, purchase another home or transfer to a step-up home. The options are yours with equity.

Many home improvements add value to the property and increase equity.

Add square footage, upgrade a kitchen or bathroom or put in a pool. They all increase value, especially in high cost states like California. Buyers have come to expect it. If you are renting the property, these may not pay-off with rental income. You will need to run the numbers to realize if improvements are cost effective. Sellers know buyers want space and remodeled kitchen and bathrooms. Touch up paint and remember it’s not about your preferences and taste. Brokers encourage neutral colors and tones for this reason.

CAL-HFA’s low to no cost home loans offer competitive interest rates to first time and repeat home buyers. Income requirements, FICO and debt-to-income ratio all factor in to determine eligibility. Speaking with a professional mortgage consultant that is approved to offer these home loans is worth the free consultation.

No Money Down Loans Key Features:

0% interest on closing costs

Deferred payment

Low interest rate loans for down payment that can be financed

Competitive interest rates on first mortgage

No money down