How to Buy a Home in Maryland with $0 Down

When you hear someone say, "buy a home with nothing down", it can make you feel like it is a scam phrase. It may make you think of those late night commercials about investment properties, and how you can buy those with nothing down, and get rich in the process.

This is not what this post is about. This post is for people that are in the market to buy their first home. This post is to help first time home buyers literally buy their first home with little to $0 out of pocket costs.

How to Buy a Home With $0 Down:

There are several ways to do this. Here is how first time home buyers can do it:

• Choose the right first time home buyer loan.
• Apply for down payment assistance programs. (If applicable)
• Obtain closing costs assistance from the home seller

Choose the Right First Time Home Buyer Loan:

• Veterans should check their eligibility for a VA Loan. VA Loans provide 100% financing, no mortgage insurance, and low fixed interest rates.
• Those shopping for homes in rural counties should look into USDA loans. USDA Loans also offer 100% financing, low mortgage insurance premiums, and low fixed interest rates.
• If your situation is none of the above, as a 1st time home buyer, you should apply for an FHA loan. FHA loans require only a 3.5% down payment, are easier to qualify for, and have low fixed interest rates. However, the mortgage insurance rate is 1.35% compared to 0.40% with a USDA Loan.

Apply for a Down Payment Assistance Program:

• If you qualify for a VA or USDA Loan this is not necessary
• There are various down payment assistance programs that will offer a $5,000 grant to assist first time home buyers.
• So if you were buying an $150,000 house with FHA financing, the 3.5% down payment would be $5,250. With a down payment assistance program that would leave you just contributing $250.

Obtain Closing Costs Assistance from Home Seller:

• VA, USDA, and FHA Loans all allow the seller to pay up to 6% of the purchase price of the house towards the closing costs.
• With a home purchase, there are various settlement costs. You have title fees, escrow, appraisals, inspections, state taxes, county taxes, etc.
• If you request seller assistance of about 3-4% as a part of the purchase contract, that will generally cover what would be your share of the closing costs.

If you are in the market to buy a new home, use these tips, and you will be able to buy your dream home with little to $0 out of pocket. For professional help in buying a new home, and securing the right 1st time home buyer loan. Visit this helpful site. Are you a   First Time Home Buyer Looking to buy a home in Maryland? ? If you need any additional advice or assistance, I will gladly help. I am licensed in MD, DE, VA, PA, NC, SC, D.C., FL, IL, OR, and TX. Call me at 443-943-6486 or email me here.