Buying a Home with Zero Down

There are several programs still available that allow certain buyers to purchase a home with little to no down payment. These are a great way for some buyers to get into the housing market. However, some buyers feel they should put off owning a home until they can save up for a more substantial down payment. Perhaps you feel it would be better to wait until you can avoid paying mortgage insurance.

The truth is it takes most people a while to save up 20% for a down payment. During this wait time, the home you could have purchased now should appreciate. If a home that cost $300,000 today appreciates at 5% per year in 3 years would cost $347,287. Also as a homeowner, you would be making payments toward your home and your future – not somebody else’s.

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

The good news is there are 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.