Buying Property With No Money Down

In the widened mortgage market there is a loan for everybody; you can buy a home with no cash down or very little cash down. Though it is not a normal manner to buy a property with no money down, still there are certain approaches you can use.

Best approach is, if you have owned home, you must use the existing equity in that property. By using a home property's equity you can also buy an investment property for yourself. When you tell your lender that you are ready to offer both the properties as security, the lender will surely provide you a good size of loan.

You can also get some additional funds for a short period by borrowing from family, or friends, or credit cards, or personal loans. Another approach is to renovate and refinance which involves purchasing a property and then do some intelligent renovations on it adding up more value.

If you agree to buy a property off the plan, you will normally have some time before it is finished and, by the time it is ready to be occupied, it may increase in value. Thus, it may raise enough to get a normal mortgage that covers 100% of the purchase price.

Normally you would need to put in a 10% deposit when you agreed to purchase the property. If you are interested in no money down deals then you can get a deposit bond which acts like a loan for the deposit. You can ask your lender for a 100% loan, as the competition amongst the lenders is so severe they can still accept it by offering you higher fees and higher interest rates. You will be surprised to find that with above few, there are still several more ways of buying property with no money down.

by Max