Traditional home buyers will quickly discover that while owning a home may cost less and be a better investment than renting, the process of buying a home can actually be quite costly. Most lenders require a down payment to be made, and if you’re like most people, you’re working as much as you can and yet are still living from one paycheck to the next – so understandably it may be difficult to come up with up to 10 percent of a mortgage’s value in a short amount of time.
Fortunately, not all hope is lost, as there are special home loan lenders and online brokers such as Solution Loans who provide special loans for bad credit situations, appropriately called no deposit home loans. A no deposit home loan offers prospective buyers the opportunity to own their own home without having to come up with the traditional down payment. In this scenario, the bank provides 100 percent of the home loan, and sometimes a little extra to help cover closing and moving costs. No deposit home loans were once quite a rarity, but thanks to a more stable economy and lower interest rates, they are much readily available to qualified home owners.
An example of a lender who will provide no deposit home loans is Homestart. Most lenders like these are available online and locally, so you can browse their website for more information and/or request a free quote, or simply make an appointment to meet in person and go over your dreams of home ownership – as well as your income, expenses, and the realistic expectations regarding a no-deposit home loan.
When looking at potential lenders of no deposit home loans, it’s important to carefully look at all of the details. There may be conditions set by the bank that you might not be able to meet; or you may find that due to your credit history or even the estimated value of the property you’re purchasing, you’ll have a larger interest rate to pay. Still, if you’re in a scenario where the only thing standing between you and a home of your own is the inability to afford a down payment, opting for a no deposit home loan may be the way to go.