Many people believe that buying a home is a sign of maturity and prosperity. It elevates one’s status and gives children an opportunity to grow more socially and emotionally grounded. Buying a home is, however, not cheap. Most people who do not own homes either have little or no money to buy a home, while some have credit scores that are too low for lenders to approve their loans.
There are, however, methods in which a person can use grants, home loans, and other incentives to buy a home with either little or no money. Here are the easiest ways to buy a home.
1. Zero-Down-Payment Mortgages
There are two types of no-down-payment mortgages that may be just what you need to realize your dream. They are the VA and the USDA loans. To qualify for the VA loans, you must have a service history: a veteran, surviving spouse of a veteran, or a person on active duty.
VA loans are considered the easiest way to buy a house because no down payment is required, the mortgage insurance is not continuing, has flexible credit requirements, has limited closing costs, and have the lowest mortgage rates in the market.
The VA loans might require an upfront funding fee, but the good thing is that the fee can be incorporated into the loan amount, meaning that you don’t have to pay cash for it.
The USDA loans, according to SoFi, are offered by the Department of Agriculture in the United States. The USDA loans are offered to those willing to buy a home in the rural areas. To qualify for the USDA loans, your household income has to range between low and average.
The loan has no down payment requirement, and its mortgage insurance costs are reduced while it’s given below the market rates.
2. Use Loans, Grants, And or Gifts to Offset the Upfront Cost.
First-time home buyers often get assistance on their down payments and their closing costs. You can easily own a house by using the Down Payment Assistance programs in every state. Every DPA program is independent and has its own rules based on what they offer.
To purchase a home using the DPA program, the buyer needs to do due diligence on the programs in their area and make an informed decision based on what suits their needs.
The DPA either gives you a grant like a gift, one that you will not need to pay back. You may also get a loan that you can only pay when you move out of the house and not while living in it, and you could also get a low-interest loan that you will pay parallel to the mortgage.
3. Using A Low-Down-Payment Mortgage
The lowdown payment mortgage loans offer you between a 3%-5% down payment. Those with a credit score above 580 qualify to purchase a home with a down payment that’s only 3.5% of the home purchase price.
Fortunately, these loans do not require much of the borrower’s contributions which means that none of that money needs to come out of your pockets as payment for the down payments.
Buying A House Easily and Cheaply
There are many different methods of buying a home. The first one is cash, but even when you do not have the finances to own a home, you can invoke the different loans and explore which one may be best suited to your needs.