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People are under the confused notion that they need thousands of dollars for a down payment on their dream home because of the problems in the mortgage industry. That is absolutely false! A HUD approved government program allows any buyer to take advantage of the amazing buyers market we are in and buy their dream home with No Money Down.

The following is a process to step you through the bascis of buying with absolutely no money out of pocket. This government program is approved by HUD and completely RESPA compliant. Find an FHA/VA approved Mortgage Planner that specializes in working with a DPA. A DPA is a down payment assistance program. One of the more popular DPA's is the Nehemiah program. Nehemiah has assisted in funding over 275,000 real estate transactions since 1998 and is completely HUD approved and RESPA compliant. Now you will need to get pre-qualifed for a DPA with a certified DPA specialist. Most people are concerned about credit with a no money down program but credit does not need to be perfect. Credit scores can be as low as 550 to qualify. FHA is primarily concerned with the borrowers ability to repay. So they will be focused on the income verification and will look at your last 2 years of income verification. Any owner occupant is eligible for this program. Now the fun part begins – looking for your new home. Due to current market conditions this is easier than ever. FHA limits have increased and typically they are around $423,000 for most areas.

In certain areas, like Los Angeles county, they go as high as $729,000.

These limits should give you plenty of flexiblity to buy your dream home. Now it's time to negotiate with the seller.

The seller will be contributing the entire down payment to you through Nehemiah (or other DPA) and give you a credit for closing costs as well. This will require their cooperation.

You will be asking for a contribution of between 7-12% so your offer should be closer to the listing price of the house. Due to market conditions sellers are more flexible than ever.

They are primarily concerned with how much they are going to net (or walk away with) so negotiate with that in mind. Meet with your certified DPA specialist to make your mortgage application.

It is imperative that you choose an experienced professional who is familiar with the workings of Nehemiah (or whatever DPA you choose) and FHA. Working with an inexperienced “Broker” will cost you.

You could lose time, money or even the home that you've chosen.

The requirements for qualifying are fairly simple.

You will need your last two years of tax returns or W-2's.

You will need to have your most recent paystub and 2-3 months of bank statements.

If you are renting right now you will also need the last years worth of cancelled checks or a letter from the property manager. Last but not least is your closing. Many people worry and sweat over this part but if everyone has done their job then it is smooth and seamless. By now all your questions have been answered and there should be no surprises.

You know what you rate is, what the term is and how much money is required – ZERO! It's such a pleasure to see new homeowners walk away from closing with a low
6. 0% fixed rate and their new home – wow!

You can do it – don't let this opportunity pass you by.
If you are in the market to Buy a Home then visit Rob Kosbergs' Detailed FREE report on Attaining your PerfectHome with a Zero Down Mortgage or for up to date Mortgage info visit my Mortgage Blog

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