by Chiel van der Voort There are many ways to buy a house, even if you have little or no money to put down. I’m sure you would like to own your own home, a place to bring up kids, love, live and have fun. With that said, here are 10 ways to buy a house with little or no money.
1. Sweat Equity
Sweat Equity is a way to get a home by trading work for equity in the house. This could be used for a down payment or in order to purchase later. This is a great technique if you are handy with tools, yard-work, and paint.
Look for fixer-uppers in neighbourhoods you are interested in. Many times these homes will have a hard time selling and the owner is ready for any offer. These houses can range from just needing a little “cosmetic” work like landscaping or painting, to totally trashed out houses in need of some serious renovation. If you are into repair work, this is a great way to get a home for a great price.
If you are not skilled at fixing and renovating, be careful with fixer-upper homes. They could end up costing you quite a large amount of money if you have to pay others to fix the house for you.
I also recommend getting a home inspection so that you know what exactly you are in for before you begin.
2. Seller Carry-Back
Look for a home with an assumable loan. Instead of buying out the owner’s equity, ask the seller to carry back a second mortgage for the rest of the money owed. If you can get the seller to carry all of the rest, you can get the home for no money down.
3. Offer an Object for the Down Payment
Offer something other than cash (land, a car, a boat, or valuable collectibles) to the seller instead of a cash down payment. This is why it is important to listen to sellers. Find out what they want and need. Maybe you have (or can get) just what they need. For instance maybe they wanted to use the down payment to buy an RV and it turns out that you just happen to have one you don’t need. Offer that vehicle as a down payment, and it saves you from coming up with the cash to buy a house in Croatia.
4. Offer Services for the Down Payment
Offer your services or expertise to the seller in lieu of a down payment. Some examples include €5,000 worth of auto services if you’re a mechanic, dental work if you’re a dentist, desktop publishing services if you’re a designer, artwork if you’re an artist or legal work if you’re an attorney.
5. Find an Investment Partner for Equity Sharing
Look for an investment partner who’ll put up some or all of the cash in an equity-sharing partnership. You make the monthly payments and the two of you split the eventual resale profits.
6. Rent-to-Own or Lease-Option
This is really is one of the best ways to buy a house when you can’t get a bank loan. Remember that you may still have to get a loan down the line. If you have a lease-option for 5 years, at the end of that time, you will need to purchase the house, so you can use the time to fix your credit.
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