Buy Your First Home with NO MONEY DOWN!

I work with a lot of First Time Buyers and the one thing that consistently surprises then is the fact that they may very likely be able to purchase their first home with No Money Down! It may sound too good to be true, but with the right credit scores and working with the right lender, it really is possible.

And this is becoming a national trend. A recent Keith Harney article reports that:

From mid-2005 to mid-2006, according to a statistical sampling of a representative group of 7,548 purchasers, nearly half of all first-time buyers financed the entire transaction, obtaining mortgages in the full amount of the home price. About 30 percent put down 10 percent or less, and 20 percent put down 5 percent or less.

The research was conducted by the National Association of Realtors, using information on home transactions supplied by Experian, a major credit and realty data firm. The median down payment of first-time purchasers, according to the study, was just 2 percent. In other words, the median-sized mortgage for first-timers represented 98 percent of the home purchase price.

So before you assume that your first home is out of your reach, do yourself a favor and learn about the many loan programs that are out there for first time buyers. But be careful, the one thing you don't want to do is get yourself in a place you can't really afford. Take the time to sit down, look at the numbers and make sure it makes sense to you!