How You Can Buy a Home for Next to Nothing Down

Here’s how you can spin a home seller’s situation into a rewarding transaction for the both of you.

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Today we’ll be looking at an interesting topic: How you can purchase a home for almost nothing down. We’re not talking about utilizing government assistance programs, VA loans, or FHA loans; we’re simply talking about buying a home for less. Here’s what we do to get our buyers homes for cheap.

We find homeowners who don’t have mortgages and are willing to do owner-financed carries with a low down payment. By doing this, the owner avoids the major hit of capital gains taxes.

Let’s say the house is in a great location and worth $700,000. The owners have no mortgage and want to sell it, most likely so they can retire. At this price point, the capital gains on their property will be very steep. If they’re at the height of their professional career, they’ll be paying even more because of their income.

You want your ideal candidate to be someone who wants to sell but doesn’t want to pay high capital gains taxes. They’ll be willing to let you purchase their property for very little down—a fraction of what you’d pay through traditional financing. 

This is a different route you can take when purchasing a home; one that is rewarding for both you and the seller.

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You could potentially negotiate a mere $20,000 down payment and buy this $700,000 home. You then begin paying the mortgage to the seller immediately—let’s say it’s $3,000 a month. You can now turn your purchase into an investment and begin renting out to receive a monthly cash flow. At this point, you’ve put down very little and have your mortgage being paid for you.

And you didn’t have to go through the traditional methods of getting pre-approved. All in all, this is a different route you can take when purchasing a home; one that is rewarding for both you and the seller.

If you have any questions or need more information, feel free to reach out to us. We look forward to hearing from you.