If you find yourself caught in the endless cycle of paying your landlord's mortgage, why not take the time to examine what it would be like to build your own equity in a home and stop paying rent?



The general perception of many potential homebuyers is that a substantial down payment is required in order to get you into a new home. It doesn't have to be this way. Because of this notion, many people believe they must save for years and years before they can qualify for a home loan. In the meantime, these people are paying for the real estate owned by someone else.

The Federal Housing Administration (FHA), or the Veterans Administration (VA) and many other government programs or grant programs are available for homebuyers with zero or little down. Hundreds of thousands homebuyers are realizing their dream of home ownership every year, and you can too.

A good real estate agent can tell you about existing lender and government programs that can get you into a new home with no money down. With a zero down payment program, you can begin to move into a home immediately and build your own equity. Qualifying for these zero down payment programs can be much easier than you think.

First, you need an excellent credit history. You should have no recent history of bad debts, and be able to prove that you can make consistent and timely payments on any current liabilities. You will be required to disclose all of your current liabilities in order to determine how much more mortgage you can qualify for. Liabilities will include such things as car payments and credit card debts. If those are paid off, the better loan you can get.

You must have at least three years of stable employment. This is either proof of employment for the past three years or financial statements for the same time if you are self-employed.

You will also need to be able to demonstrate that you can afford the taxes, insurance, and utilities that come up front on your home purchase. This will vary depending on the amount of your home purchase.

Under the terms of a zero down payment program, there will be several types of homes that you can get into. These properties include single-family homes, townhouses or condominiums. It is important to note that not all homes will qualify for the zero down payment program. An experienced and knowledgeable REALTOR will know what properties in your area can qualify under these programs and can assist you in finding the home that is right for you.

Buying a home with no money down can be an easy process. Consider the benefits of getting into a home that is yours and building equity every month, instead of renting and not having anything to show for it in the end. Plus, the interest you pay on your loan is a tax deduction.

The appreciation in value of real estate is the basis of more wealth in this country than any other. Investment example: a $400,000 home that appreciates 10% is $40,000 equity in just one year, $44,000 in the second year and so on