| There's an old television program that aired in the | | | | on the title/deed, along with the mortgage holder as |
| 1960's called Hogan's Heroes. Sgt. Schultz (John | | | | the lien holder. |
| Banner) was one of the main characters. His constant | | | | * Assume a Mortgage - Some owners are having a |
| exclamation throughout his tenure on this show was, "I | | | | very difficult time selling their homes due to the |
| know nothing!" Is that where you are in regards to how | | | | mortgage crisis. Many are willing to allow a buyer to |
| to buy a home without a down payment? If so, you | | | | assume their mortgage in order to get it sold. This |
| are about to become educated. | | | | allows them to get out of the mortgage to a certain |
| Believe it or not, if you have decent credit - and | | | | extent and purchase another home. Of course, there |
| sometimes even if you don't! - you have alternatives | | | | are requirements that the buyer must meet before the |
| as to how to purchase a home without a down | | | | mortgage company will allow the assumption. In order |
| payment. Look at the following examples: | | | | to assume a home loan you must qualify for the loan |
| * VA Foreclosure Loans - What's unique about these | | | | and pay closing costs. |
| loans is that anyone can buy a VA foreclosed home | | | | * Lease/Purchase - This has been a popular one for |
| with no-money down. You can find VA foreclosures | | | | years. You find property you are interested in not only |
| through local real estate listing agencies, typically | | | | renting, but buying. Sometimes property will be |
| members of Multiple Listing Service (MLS). You can | | | | advertised as such. There are various approaches to |
| also do a search on the Internet for VA home | | | | this option. |
| foreclosures. You'll find plenty. VA sells their own | | | | * Owner agrees to accept all rent payments over a |
| repossessed homes. If you are not a veteran or on | | | | specified time period in exchange for a down |
| active duty, however, you won't be able to get a VA | | | | payment. At the end of the specified time period you |
| loan. Instead, you'll be required to obtain your own | | | | will have to obtain your own loan to pay for the |
| conventional or FHA financing. Still, there is no down | | | | remaining agreed-upon sale price of the property. |
| payment required. | | | | * Owner agrees to accept part of the rent payment |
| * Owner Financing - owner agrees to be your | | | | over a specified time period in exchange for a down |
| mortgage holder. You reach an agreed-upon price with | | | | payment. At the end of the specified time period you |
| the property owner. A legally binding agreement is | | | | will have to obtain your own loan for the remaining |
| drawn up that includes everything a mortgage loan | | | | agree-upon sale price of the property. |
| would include as far as price, duration of loan, interest | | | | * Owner agrees to lease the home to you at a |
| rate and loan payments. The property owner accepts | | | | discounted rate, and you agree to obtain a loan to buy |
| payments from you just like a bank or mortgage | | | | the home at a specific price within a specific |
| company would for a traditional loan. You are | | | | timeframe. The agreed upon price is typically more |
| considered the owner of the home, since your name is | | | | than if you were paying the market amount for rental. |