You can still buy your 1st home with no money down

A lot of people would love to buy their first home right now, but are terrified about financing crisis. It seems that everywhere we look right now there is bad news about real estate and nobody can get a home loan. While it is true that it has become more difficult to get a loan, there are still loan programs available for first time home buyers right now.

Here is a common scenario that is allowing first time home buyers to buy homes with no money down. FHA still has a program where the minimum required down payment is 3.5%. FHA also allows the down payment to come from a third party in the form of a gift. We are finding that a lot of first time home buyers are borrowing the 3.5% down payment from their parents and then repaying their parents back when they receive the $7,500 tax rebate that the government is currently offering.

For a first time home buyer to break even using the FHA 3.5% down payment and $7,500 tax rebate, they need to purchase a home right at $200,000. Depending on your local real estate market it is likely that there are some pretty nice homes available under $200,000. When you combine the low home prices with low interest rates, it is easy to see why it is actually a great time to buy your first home.

Now to get started you just need to sell your generous parents on this idea and find a good local real estate agent.