As we enter the spring of 2011 we read a lot about the tough, new lending standards and how hard it is to get a mortgage for your for your home purchase. Minimum down payments have increased and loop-holes that got buyers into homes for sale without any down payment have been plugged.

So, it may be hard to believe that you can still buy a new house without any down payment right here in Columbus OH.

How is this possible and who qualifies?

Let’s answer the second part of this question first. Anyone who qualifies for FHA financing can buy no-money-down homes for sale. You will have to call a loan officer which credit scores are acceptable, as loan requirements change all the time. As of the writing of this article you needed a credit score of at least 620.

How do you get away without paying a down payment? Essentially, you work for your down-payment.

Many local builders had an extremely slow year. They are very motivated to sell a few more homes. Therefore, they came up with huge incentive packages that give buyers valuable, free upgrades, as well as an opportunity to earn theirr down payment by finishing the home themselves.

Here is how it works.

Say you buy a new home for $100,000. This would require a down payment of $3,500 (3.5%) under current FHA guidelines. The developer builds your new home or you pick one of their unfinished spec-homes. One way or the other the builder lets you make the finishing touches. Typically, this involves painting the house and landscaping the yard. If you do this work, you earn your down payment.

The builder will even provide the paint and the bushes you need to plant in the flower beds in front of your new home. Seems like easy work to earn a $3,500 down payment.

The seller (builder) usually pays for your closing costs anyway, so you don’t have to bring any money to closing.

Where can I find no-money-down homes?

You can’t just buy any Columbus house for sale with this program. It has to be an un-finished spec home or a new build where the developer offers the financing. You can’t do it with a typical model or inventory home, because they are already decorated and don’t need any work.

I know many Columbus subdivisions where developers offer this program right now. I strongly recommend that you take advantage of this unique opportunity. The number of homes is limited and this program may disappear, if the market heats up.

Give me a call at (614) 975-9650 and let’s explore, if this option is for you.

Thanks for reading the Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.
(614) 975-9650