Think you do not have enough cash to buy a home? It can take a lot less than you think.

Think you do not have enough cash to buy a home? It can take a lot less than you think.

You may think that you will need $20,000, $30,000 or even more in the bank before you can buy a home.  In the real estate world 10% down is a common figure. Then there are the dreaded closing costs. To buy a $200,000 home you could be looking at $20,000 in earnest money and then $10,000 – $15,000 more in closing costs.

What if you do not have $30,000 of available cash? Are you stuck renting?  Luckily all is not lost.  There are many home-buying options for people who do not have a stockpile of cash.  Not all sellers and mortgage companies require 10% down. There are loans that can be obtained for 5% down or in some cases, as low as 3%.

The government offers assistance to home buyers. Government programs exist that will help you come up with the earnest money and some programs will help you pay closing costs. There are dozens of down payment assistance programs and a good mortgage broker will find you the right one.

Another available option is asking the seller to cover some of the closing costs.  Some sellers will pay the closing costs to help get their homes sold.  A good real estate agent can help you negotiate with the seller to cover some of your costs.

The key is to work with a good real estate broker and a great mortgage broker. A first-rate real estate broker will make you understand what your realistic price range is as well as how much money you will need to find the home of your dreams. A good mortgage broker will help you get the right mortgage at the best terms. I have seen people buy a $200,000 townhome and they only had to come up with $4000 in cash. They were only able to do it with the help of their professional mortgage broker who found them government assistance.

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