Buying a Home with Zero Down

There are still several programs available that allow certain buyers to purchase a home or with little to no money payment. They are great way for buyers to break into the housing market and stop wasting money paying someone else mortgage. Some buyers feel they should put off purchasing a home until they are able to save for a more substantial down payment. They feel maybe it would be better wait until they can avoid paying mortgage insurance.

The truth is it takes most people a while to save up 20% for a down payment, and in that time they home could purchase now will be appreciating. If a home that cost $300,000 today appreciates at 5% per year in 3 year will cost $347,287. Also in that time, a homeowner would be making payments toward their home and their future – not somebody else’s.

No one like mortgage insurance, but it what it does is enable you to get a hedge on inflation. It allows you purchase at today’s value instead of years down the road. The good thing about mortgage insurance goes away once you pay down 20% of your note. You could also make it go away sooner by refinancing once your home appreciates and is worth 20% more than you owe.

The good news is there are currently some great programs that offer reduced or no mortgage insurance. Stop letting opportunities to invest in your future pass you by, contact us today to see what programs might be available to you.