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21
May

How to Buy a House with no Savings or Money?

Buying a home in South Bay is one of the biggest investments we make in our life. Prices of real estate in South Bay vary from neighborhood to neighborhood, and each neighborhood gives you its own reasons to select it. Regardless of the neighborhood you choose, buying a house in South Bay or any other area requires you to break the bank.

What if you don’t have the money or the savings to buy one though? When you know you have found your dream home, but affordability is an issue, then we have got something to say that is of great interest for you.

You are in the USA, the land of dreams, and here we always have an alternate way to fulfill our dreams. This holds true for buying real estate in South Bay too. If you are out of or severely short on money, you can still buy your dream house. Here are a few ways you can do it.

FHA Loans

Federal Housing Administration (FHA) loans are one of the most flexible and lenient sources of funds for current home buyers with just a 3.5% initial payment. This fact alone makes it an ideal option for buyers who are looking for multi-unit homes, have low or below average FICO scores, and can’t afford a big down payment. They used to require mortgage insurance premiums (MIP) which were decreased in 2015 to make them even more affordable.

Conventional 97
 

The Conventional 97 was reinstated in 2016 by the Federal Housing Finance Agency (FHFA), the parent company of Freddie Mac and Fannie Mae.

It is a special program that requires borrowers to pay just 3% down payment and allows a third party to donate the initial payment on behalf of the buyer. This donor can be a blood relationship, a legal guardian, domestic or romantic partner, or a spouse. The maximum amount one can get for buying a house in South Bay through Conventional 97 is $417,000 and does not allow the purchase of multi-unit homes.

Good Neighbor Next Door
 

The GNND is a mortgage program of the Housing and Urban Development (HUD) that requires homebuyers to pay no more than $100 for a real estate in South Bay. People who are eligible to apply for it include:

  • Firemen
  • Technicians in medical emergencies
  • K12 Teachers

The buyers also receive a staggering 50% discount on the purchase of the home by accepting that only they will reside in the house for three years. The program allows you to move into your dream house within 180 days, which means you have more than enough time for repairs and other fixtures.

There are other programs that can be considered and are really helpful for homebuyers around the country. These include Loans for Housing Construction (3.5% down payment), Concatenated Mortgage "Piggy-Back" (10% down payment), and the USDA loan (no down payment required).

These programs ensure that the American Dream is kept alive and people can have a roof over their head even if they have no savings. Contact Casa Bella Properties today to learn more about the options you have if your savings cannot buy you the real estate in South Bay that you crave.
If you want to hire the best agents in South Bay, contact us here.

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