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Discover how to Buy a Home with a Zero Down Mortgage

by: RobKosberg
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People are under the confused notion that they need thousands of dollars for a down payment on their dream home because of the problems in the mortgage industry. That is absolutely false! A HUD approved government program allows any buyer to take advantage of the amazing buyers market we are in and buy their dream home with No Money Down.

Here is a step by step process to BUY a home with ZERO down payment and ZERO out of pocket expenses using an FHA approved mortgage and time tested principles.

You must first find an expert Mortgage Consultant that's familiar with FHA and working with a DPA. DPA is short for down payment assistance program. The most popular DPA is the Nehemiah program. Nehemiah has been in existence since 1998 and has assisted buyers with gift funds of over $1 Billion (yes a "B"). They are completely government approved.

Next you will get pre-qualified for a down payment assistance program with a certified specialist. The most important part of qualifying is income verification. You must provide your last 2 years of income verification. Fortunately, credit is flexible. Typically credit scores must be around 580 to qualify but in some cases you can go as low as 550. This is NOT a first time homebuyer program. Anyone buying an owner occupied property is eligble.

Begin your home search. FHA limits have been raised to as much as $729,000 in some areas such as Los Angeles county. However, most areas go up as high as $423,000. For many areas $423,000 buys much more than a starter home in todays market which makes home shopping a snap.

Now it's time to negotiate with the seller. The seller will be contributing the entire down payment to you through Nehemiah (or other DPA) and give you a credit for closing costs as well. This will require their cooperation. You will be asking for a contribution of between 7-12% so your offer should be closer to the listing price of the house. Due to market conditions sellers are more flexible than ever. They are primarily concerned with how much they are going to net (or walk away with) so negotiate with that in mind.

Make application for a mortgage with a DPA specialist. Make sure that you choose someone that has experience working with the FHA and especially a DPA. This is not the time to risk working with an inexperienced "loan officer". You will lose valuable time and perhaps the deal as well.

The items that you will be required to have on hand are as follows. You will have to provide your last 2 years of W-2's or your tax returns if you are self-employed. Have available your most recent pay stub and the last 3 months of bank statements. If you are currently a tenant renting a property you will also need your last 12 months of cancelled checks or a verification from the property management company.

Now it's time to celebrate! The closing is the simpliest part - if your realtor and mortgage planner have done their jobs. There should never be any surprises and all your questions should have already been answered. It is amazing to see clients walk away from closing with a 5.8% Fixed rate mortgage and a new home - all with no money down! Anyone can do it, even you. Don't miss out on the greatest buyers market of our generation.

About the Author

Before you go any further, make sure that you get the full story and check out Rob Kosbergs' Detailed FREE Guide on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog

Discover how to Buy a Home with a Zero Down Mortgage

About the Author

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