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How do you buy a home without a down payment?

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Quick Answer

A home can be bought without a down payment with adequate income, a good credit score and special government programs, according to Lifehacker. However, It's often beneficial to offer a down payment to get a lower interest rate and to pay the home off faster.

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How do you buy a home without a down payment?
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Full Answer

While an individual can get a home without a down payment, he may be forced to purchase private mortgage insurance, notes Lifehacker. Some lenders allow borrowers to take out two loans, with one acting as the down payment and the other acting as the home's purchase price. An individual can also participate in a local housing program if he is willing to help build his home.

Government programs that allow a person to buy a home without a down payment include the VA loan program and programs focused on bringing homeowners into a specific area, states Lifehacker. Only veterans and their surviving spouses are eligible for the VA program. Veterans must also have a qualifying credit score and income. Government programs intended for home ownership in specific areas may only consider properties in high-crime and rural areas.

Another benefit of buying a home with a down payment is the borrower can earn experience in saving up money for a home emergency fund, according to Lifehacker. The fund can be used to cover the cost of maintenance and unexpected repairs and replacements around the home.

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