Purchasing A Home with No Money Down

Many buyers are well-qualified to purchase a home, but lack the available funds needed for a down payment. If this sounds a bit like your position, fear not! There are many options for very low or no money down payments.

If you’re looking for a home in a more rural area (typically the northern regions of Chester, Bucks, and Montgomery counties and Berks county), a USDA loan may be a great option. Sometimes referred to as a Rural Development Loan, this type of mortgage requires no money down and is a great option for those without much cash available.

If you or your spouse is a veteran or an active-duty service member, you may qualify for a mortgage backed by the Veterans Affairs (VA). A VA loan requires no money down and does not require private mortgage insurance.

Lastly, a “Seller’s Assist” may drastically reduce the amount of money needed for closing. The explanation might seem a bit confusing, but it’s really rather straightforward. Say, for example, you’re purchasing a home and you’d like to make an offer of $200,000. If you’re short on cash, the agent might suggest that you submit an offer of $206,000 instead and receive a $6,000 seller’s assist (which is money that comes back to you at the settlement table). You’re still paying a net of $200,000 and the seller is still receiving a net of $200,000. The difference is just that the sellers are providing you some upfront funds to be used toward closing costs.

Be sure to let your EveryHome agent know if you might wish to consider one of these options. We would love to help!