Well, the quick answer to the question of whether you cannot buy a house without money involved, at least not before the contract has been sealed, is a resounding no. Or stated another way, of course, you can buy a house even when you do not have plenty of money for the down payment and all the other costs involved in the transaction. You just need plenty of imagination, information and good impressions to achieve such a seemingly impossible feat.

Get the Seller to Finance the Purchase

If you are close friends with the seller or the seller is in a hurry to leave the property, you might just convince him to sell his own house with his own money. It may sound possible but it has been known to happen a few times especially if and when you can find a motivated seller. Basically, you are asking the seller to finance the sale and then you pay him back based on a pre-determined payment schedule. In most instances, this happens with direct sales instead of using a middleman like a real estate agent or broker. The seller will pay for the transaction costs, which you will pay back in the future along with the money for the house itself.

Get Partners

An easier way to finance the purchase of a house with none of your money is to get partners. This option has more benefits, too, in terms of no personal credit checks, no loan applications, no money on your part as well as lesser waiting period and often better rates. It would not have been possible especially when you have a bad credit record. Essentially, you will become the industrial partner by doing all the paperwork while your partners become the capitalists in the venture by providing the money for the total cost of the house.

You can then live in your new home with little of your money spent. Well, of course, you have to pay back the loan in the future according to a contract with your capitalist partner. But how exactly do you attract partners? You start by offering trust, credibility and a good relationship with your family and friends who happen to be well-off. Impossible, you say? Not when you try it first and then see what happens.

Get an Existing Contract and Assume Responsibility for it

You can also get the homeowner to sell his property subject to the existing mortgage. This is legal in most instances but you can also consult a lawyer just to be on the safe side. Basically, you are assuming responsibility for the payment of the monthly mortgage amortization. The trick is in making sure that the terms of the existing mortgage contract will work in your favor from the interest rates to the monthly payments.

When all else fails, you can always turn to your credit cards as well as take out promissory notes to finance the total purchase cost of the house. Admittedly, these are risky propositions but beggars cannot be choosers. But seriously speaking, purchasing a home is a very important step in your life that will affect your financial stability now and in the future. It pays to think things through and maybe opt for renting an apartment and then saving for the costs of the down payment on a proper house.

Author Bio: Article by Hank Ericson, a Realtor that focuses on Lansdale Real Estate & North Wales Real Estate.

Category: Real Estate
Keywords: buying a house,no down payment,purchasing a home,purchasing a house,buying a home