Friday, May 29, 2009 9:26 AM
Buy Real Estate With "Nothing Down" or Low Down Payments In Western North Carolina
Buying real estate with a "nothing down" or a "low down payment" loan has been especially popular since the early 1980's when Robert G Allen wrote his very popular book "Nothing Down" and then followed up with another popular book called "Creating Wealth" along with his personal seminars and investment groups (RAND) around the country that followed. (David Craven is a successful real estate investor and was a student of Robert G Allen). Since that time period creative financing techniques had greatly multiplied to what appeared to be an endless list of methods to buy real estate with "Nothing Down". The collapse of the subprime mortgage market along with a tightening of lender requirements for buyers to get a loan have greatly shortened the list of these financing opportunities in recent years.
The opportunities to buy a home with a "nothing down" or "low down payment" loan in Western North Carolina including Waynesville, NC still exist! The Veterans Administration (VA) continues to be available for qualified veterans. The USDA Rural Development Program is another ongoing government program that allows a buyer to own real estate with "nothing down". The methods to buy real estate with "nothing down" can also involve receiving the funds from another source other than the liquid assets of the buyer. Source of down payments are still available for first time home buyers from their IRA. Please talk to your tax professional first. Down payment can also come from a "gift" from immediate family members. Strict documentation is needed here so ask an experienced mortgage proffessional for further advice. The tax credit for up to $8,000 is currently being looked at as another means to achieve "nothing down" financing. This is very complicated and as of this writing details have not been worked out. The return of the money in the form of a tax credit (from 2008 or 2009 taxes) in effect can result in a "delayed nothing down" home purchase method for first time home buyers. A qualified buyer does not have to pay this money back. The FHA insured loan program with low down payment is also a great way to buy a home with a small amount. Qualify for the tax credit and some if not all of your down payment is returned (Delayed Nothing Down).
Congress is currently considering HR 600, legislation to allow down payment assistance (DPA). DPA would come from an allowable gift source and would be used for the FHA insured loan program. This program would be available to credit worthy borrowers by allowing private partnerships between sellers and a non profit organization providing a "gift" to the qualified homebuyer to used as a down payment. Ameridream.org is a place to find out more on this legislation.
If a down payment is keeping you from buying a home, do not assume that buying a home is out of reach. Call an experienced mortgage professional today. The lower housing prices, low, very low, interest rates, first time home buyer tax credit, government stimulus plan for real estate, and now the opportunities to buy a home with "nothing down" or "low down payment" financing makes this a great time to buy real estate.
Robert G Allen "Nothing Down" www.RobertGAllen.Com
Veterans Administration Loan Guarantee www.homeloans.va.gov/
FHA Insured Loans www.FHA.Com
USDA Rural Development www.rurdev.usda.gov/
First time home buyer tax credit www.federalhousingtaxcredit.com/2009/index.html
Ameridream.org (DPA assistance) www.Ameridream.org
RE/MAX Realtec Group