| Although most people will tell you that buying a house | | | | been unable to make consistent monthly savings. This |
| without a down payment is no big deal, the fact | | | | indicates that you are not yet ready to shoulder the |
| remains that it is difficult. Even so, what others say | | | | additional financial responsibilities of home ownership. |
| also has some element of truth. You can get a 'zero | | | | Lenders may tell you about no down payment and no |
| down payment' home loan if you are persistent | | | | closing cost loans, but if there are no apparent closing |
| enough and are not discouraged easily when you are | | | | costs, the costs have probably been included in the |
| refused a loan or are told that it is impossible. Your | | | | price. The lenders generally apply a 28/36 rule while |
| persistence will eventually lead you to a lender | | | | deciding on the amount of loan for sanction. This |
| prepared to work with you. | | | | means your monthly home loan repayments should be |
| But experts advise against taking a 'no money down' | | | | within twenty-eight percent of your gross monthly |
| home loan even if some lender is ready to give the | | | | income, with total debts contained within thirty-six |
| loan. The reasons they cite are sound and carry | | | | percent. |
| weight. | | | | However, some experts recommend using a thumb |
| Home loans are generally structured to make you pay | | | | rule of a highest home purchase price limited to two |
| ten to twenty percent of the cost as down payment, | | | | and half times your gross annual income with the |
| which makes the amount loaned nearly eighty percent | | | | amount of loan never above twice your gross annual |
| of the total cost. Upon negotiating, the down payment | | | | income. You need to consider everything calmly and |
| can come down to five percent. If you have not been | | | | adopt a prudent approach when you decide to go in |
| able to save even five percent of the cost of the | | | | for a zero down payment home loan. |
| home that you intend to buy, it means that you have | | | | |