here are many ways to buy
a home, even if you have If you are not skilled at repairs
little or no money to put and renovation, be careful about
down. Here are a few of the fixer-upper homes. They could end
basics: up costing you quite a large
amount of money to pay others to
1. Sweat Equity fix.
Sweat Equity is a way to get a I also recommend getting a home
home by trading work for equity inspection so that you know what
in the house. This could be used exactly you are in for before you
for a down payment or for begin.
purchase later. This is a great
technique if you are handy with
tools, yard-work, and paint. 2. Seller Carry-Back
Look for fixer-uppers in Look for a home with an assumable
neighborhoods you are interested loan. Instead of buying out the
in. Many times these homes will owner's equity, ask the seller to
have a hard time selling and the carry back a second mortgage for
owner is ready for just about any the rest of the money owed. If
offer. You will find these houses you can get the seller to carry
ranging from just needing a all of the rest, you can get the
little "cosmetic" work like home for no money down.
landscaping or painting, to
totally trashed out houses in
need of some serious renovation. 3. Offer an Object for the Down
If you are into repairs, this is Payment
a great way to get a home for a
good deal. Offer something other than cash
(land, a car, a boat, or valuable
collectibles) to the seller 5. Foreclosures
instead of a cash down payment.
This is why it is important to Look for foreclosure properties
listen to sellers. Find out what that require little or no down
they want and need. Maybe you payment. Some lenders and
have (or can get) just what they government agencies will let you
need. For instance maybe they buy a foreclosure with no down
wanted to use the down-payment to payment if your credit is good
buy an RV and it turns out that and they're anxious to have the
you just happen to have one you home occupied, or if you have
don't need. Offer that vehicle as skills (carpentry, landscaping or
a down-payment, and it saves you even painting) that you can use
from coming up with the cash. to increase the home's value.
Distressed properties - assume
with little or no down to save
4. Offer Services for the Down foreclosure.
Payment
Offer your services or expertise 6. VA or Other No Money Down
to the seller in lieu of a down Loans
payment. Some examples include
$10,000 worth of auto services if Look for conventional loan
you're a mechanic, dental work if programs such as VA or FHA that
you're a dentist, desktop require little or nothing down.
publishing services if you're a VA loans have helps countless
designer, artwork if you're an veterans get into their homes.
artist or legal work if you're an There are often programs
attorney. available to first time buyers or
people who are distressed (such
as with Hurricane Katrina) that no money down.
will help people get into a home
with little money down. You
usually will have to qualify for 9. Rent-to-Own or Lease-Option
the loan with the bank, though.
This is really is one of the best
ways to get into a home of your
7. Find an Investment Partner for own when you can't get a bank
Equity Sharing loan. Remember that you may still
have to get a loan down the line.
Look for an investment partner If you have a lease-option for 5
who'll put up some or all of the years, at the end of that time,
cash in an equity-sharing you will need to purchase the
partnership. You make the monthly house, so you can use the time to
payments and the two of you split fix your credit, or use one of
the eventual resale profits. the other options that are
discussed in our book to purchase
the house at that time. You can
8. Wrap-Around Financing always try to negotiate another
5-year lease-option if you need
Wrap-around financing is where more time. (For more detailed
you assume a seller's VA Loan by infomation on lease-options,
doing a new Contract for Deed. check out our free ebook, "Buying
Since this contract is flexible a Home When You Have Bad Credit"
and does not have to follow the at http://I-can-buy.com.)
old loan, you can ask the seller
to carry not only the loan
amount, but the rest of the 10. Government and Community
purchase price of the house, Down-payment Programs
letting you get in with little or
There are many community and
non-profit organization programs • National Home Foundation
out there to help people get into http://www.nationalhomefoundation
homes of their own. Many of these .org
do no require any money down.
• GiftAmerica Program (GAP)
There are some organizations and http://www.giftamerica.org
programs that will pay for some
or all of the down payment for • The Nehemiah Program
you. Generally these are for http://www.nehemiahprogram.org
lower to moderate-income
individuals, but these days that • New Song Down Payment
includes a lot of people. You Assistant Program
also usually have to be able to http://www.buyers-assistance.com
qualify for an FHA loan (which is
somewhat easier than a • Equity Grants
conventional bank loan.) If you http://www.equitygrants.com
have been unable to get into a
home because you don't have • Realty America
enough money for a down payment, http://www.realtyamerica.org
then maybe one of these programs
will be for you. • Homes For All Program
http://www.ezdownpayment.com
Below is a list of organizations
that have down payment assistant Also check in your local area,
programs: because many communities have
similar programs of their own.
• AmeriDream Inc.
http://www.ameridream.org
About the Author:
This has been an excerpt of the FREE ebook by Alexis Dey called "Buying a Home When You Have Bad Credit." Copyright "© 2005-2006 Mohave Publishing. Don't let bad credit stop you from buying a home. Check out the ebook at http://I-can-buy.com now to find out how!
Source: www.isnare.com
