You want to buy a home but not sure if you really can afford it. Can you still buy a home with little to no money down?
While the basic answer is yes, there may be a bigger question in that SHOULD you be buying a home?
There are many programs and financing options out there that allow for little to no money down even after the last few years of sub-prime mortgage clean up. Banks and lenders are being much more careful who they allow to purchase a loan but they are still lending money on zero down home loans.
The Federal Government has created certain programs such as the USDA (yes, that's the agricultural dept) for allowing zero down mortgage loans on qualifying homes. Qualifying means they must be in certain locations and meet certain requirements for safety. While this may sound strict, the USDA wants to make sure, should you default on the loan and they are stuck with the property, they have a better chance at selling it. It's their way of determining ahead of time whether they can sell the property in the future or not.
The ideal case, of course, is the loan not going into default and you end up enjoying your home until you personally sell it yourself.
Knowing whether or not you SHOULD buy a house is determined not only by you but the lender as well. You should make sure your credit is in good standing and that you have a budget in place for yourself. Owning a home is much more than just a mortgage payment. It's also taxes, insurance and maintenance. Be sure to include a few hundred dollars each month on top of the mortgage payment to account for any unexpected issues and payments.
The lender will also go over all your finances and determine if you can afford a home with your income and budget. They will review your credit history, payment reliability and job status. They want to be sure you can afford a house payment and preferably a couple in the future should you loose your source of income.
There are also very low down payment options as well if you are considering putting a little down for a lower interest rate. The best place to start would be to talk to a lender about your options. They may have new and better financing options that will suit your situation more accurately.
So can you buy a home in Alamogordo with no money? Yes. Should you? Only you can make that decision. Be sure to contact us anytime for tips, answers to your home buying questions and any information on Alamogordo real estate.