Buying a house with no money down is easiest to do if you have great credit and qualify for no money down options through specific programs. One of the programs that often offer no money down options is a program offered for first time home buyers. However, there are other ways of buying a house with no money down.

Home Loans

If you’re thinking about buying a house with no money down, the first thing you need to consider is the way that a home loan is decided. A seller can ask whatever they want to for a house. In truth, the bank isn’t all that concerned about how much the seller wants for the house. What they really want to know is how much the house is worth on the current market. They also want to know about the buyer’s credit and financial history in general.

Let’s just assume that you have good credit and qualify for a home loan of some sort. The seller is anxious to get out from underneath the house payment and is willing to accept a lower amount than the house is actually worth. This gives you some room to play with. If you can get the amount low enough so that the remaining sum of worth on the house is high enough, you can use this leftover amount as your down payment.

For instance, you found a house worth $100,000. The bank wants 20% down. The seller is willing to sell the home for $80,000 just to get it over with. You use that extra $20,000 as your down payment. You’re happy, the seller is happy and the bank is giving you the loan. You may think that no seller is going to take that much of a loss on the home, but you have no idea how much they actually put into the home or how badly they need out from under the house payment. This scenario is quite a bit more common than you might think.

If buying a house with no money down is the best option for you, then don’t overlook the power of haggling. The housing market is in such a slump that lenders and realtors will do almost anything to get a buyer into a home. Talk with them and let them know that the only way you will consider buying a home is if you can buy it with no money down. If they can’t meet this need then you can always let them know you will find a lender who will.

Deferred Payment

Buying a house with no money down can be as simple as using the deferred payment method. This is a method that requires a down payment, but not upfront. The payment can be put at the end of your payment schedule or broken up into balloon payments that are dues along with your regular monthly payments. This is a great option to use if you are in a hurry to get into a home and have lump sums coming to you in the future that will cover the balloon payments.