How to Buy a House Without Money
- 1). Order a copy of your credit report and score to learn your credit status. Your personal score determines whether you're eligible to obtain a mortgage loan with no money down.
- 2). Raise your credit score. Pay your bills on time, reduce credit card debt and pay off collection accounts to improve a low credit score and qualify for the best financing. If possible, obtain a 700+ credit score before applying for a home loan.
- 3). To get a mortgage loan with no money down, you'll need to receive 100 percent financing from a mortgage lender. Lender guidelines vary, but in most cases, no money down loans are available only to buyers with a good credit history.
- 4). Ask the seller to pay the closing costs. Settlement fees or closing costs are approximately 6 percent of the sales price. Buyers normally pay this fee at closing. However, if you want to buy a house with no money down, ask the seller to pay this fee. In exchange, be prepared to pay the full asking price for the property.
- 5). Expect a higher interest rate. Although no money down mortgages are convenient, they generally involve higher interest rates. Higher rates equal higher monthly payments, which can limit your buying power.
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