How to Buy a House in California with No Money Out of Pocket
The number one obstacle to buying a house in California is not having enough money for a down payment.
These top 5 strategies will help you buy a house in California with little to no money out of pocket.
1) See if you qualify for down payment assistance programs.
Depending on where you are buying, you could receive as much as $20,000 for down payment and closing costs.. California down payment assistance programs are available with easy qualifying criteria and you typically do not have to be a first time home buyer.
2) Apply for a Zero-Down or Low-Down mortgage program.
There are a handful of home loans in California that have low or no money down requirements. Each loan has different qualifying criteria. They can be combined with California down payment assistance to pay for closing costs. This includes programs guaranteed or insured by the federal government and offered by local approved lending institutions.
3) Get seller concessions to pay for closing costs.
The down payment isn’t the only thing you have to consider. There are closing costs, too. It is customary for most mortgage programs that allow down payment assistance to let the seller pay for a buyer’s closing costs. A savvy real estate agent knows how obtain seller concessions for you.
4) Look at the HOA contract before you make an offer.
It is common for houses in California to belong to a homeowner associations (HOA). HOAs establish rules that help maintain the community. Homeowners part of the HOA contract pay fees that help pay expenses of
It is common for homes in Arizona to belong to a homeowner association (HOA). HOAs establish rules to help maintain the community. Homeowners in the HOA pay fees to help pay the expenses related to running the HOA and maintaining common areas (ex. private parks). These fees are typically charged monthly, quarterly or annually. Some HOAs charge transfer fees or other miscellaneous fees when you buy your home. If you want to buy a home with little to no money out of pocket, you need to check to see if the home you are buying requires you pay these HOA fees upfront.
5) Shop around for cheaper homeowner’s insurance.
When you buy your home, you will have to obtain a homeowner’s insurance policy. It will pay off to shop around with different insurance agents to see who will offer you the lowest plan. This will save you money upfront and also lower your monthly mortgage payment. Like many different services, homeowner’s insurance plans are offered at different prices by different companies. Also, there are strategic ways to lower the cost of your insurance policy such as bundling it with your other types of insurance policies you are paying (ex. car insurance).
Limited or no savings doesn’t have to stop you from buying a house in Arizona. The first step is to find out what assistance options and loan programs you qualify for.
