Can You Buy a House With No Money Down?
Owning your own home offers numerous advantages—in addition to letting you build equity, homeownership also presents certain tax benefits, provides greater stability, and allows for more freedom in terms of decorating. Unfortunately, rising costs have made it difficult for many people to save enough money for a down payment. But do you actually need to have the traditional 20% set aside before purchasing your home, or can you buy a house with no money down?
You’ll be glad to know that certain options are available that make it possible to purchase a home with minimal or even no money down. If you’re a U.S. veteran, active-duty service member, or widowed military spouse, you may qualify for a no-money-down home loan guaranteed by the Department of Veterans Affairs (VA). Certain conventional mortgage lenders (ones not backed by the government) also offer no-money-down programs. Plus, many Federal Housing Administration (FHA) loans allow for down payments as low as 3.5%.
It’s important to remember that different loans have different requirements. So, you should consider speaking to an experienced real estate attorney in advance to confirm that you meet the applicable qualifications.
The Pros & Cons of Buying a House With No Money Down
If you’re debating whether to purchase a home now with no money down or wait until you’ve saved enough for a down payment, you’ll want to consider the following when making your decision:
- Buying a house with no money down could allow you to become a homeowner sooner, especially if you need to set aside a certain amount of money for closing costs, repairs, appliances, furniture, or moving expenses.
- However, many lenders offer lower interest rates with larger down payments, so putting more money down at the outset could mean spending considerably less money on interest over time.
- Certain lenders also require that borrowers take out private mortgage insurance (PMI) if they’re putting less than 20% down.
In addition to walking you through the requirements for certain mortgages, a knowledgeable real estate lawyer can also help you determine whether buying a house with no money down is in your personal best interests.
Your Source for Legal Help in Tampa Bay
If you’re ready to take the next step with buying a house, one of the first things you’ll want to do is hire a real estate attorney to assist you with the process. While Florida doesn’t require that real estate sales be overseen by attorneys, it’s still a smart idea to retain a lawyer because they can:
- Represent you in any negotiations with the seller
- Draft supplemental documents as needed (for example, contract amendments or occupancy agreements)
- Advise you on any legal issues that might arise during the course of the transaction
The real estate attorneys at The Lyons Law Group, P.A.—a trusted firm that’s been in business since 2008—are pleased to provide a wide array of real estate closing services for buyers and sellers in Pasco County, Hernando County, and other areas within the Tampa Bay region. We offer free initial consultations at our offices in New Port Richey, FL, and Spring Hill, FL, so contact us today and let us know when you’ll be available to meet.
