It can be difficult to buy a house when you don’t have a lot of money saved up. But it’s not impossible! In this blog post, we will discuss some tips that will help you buy a house even if you don’t have what’s typically considered a large enough deposit. Keep reading to learn more about mortgage solutions for residential home buyers and property investors.
1. Research government schemes that could help you buy a house without a deposit
There are a number of government schemes available that can help you get into a property with a small deposit. Do your research and see if any of these would be right for you.
2. Save as much money as possible so you can afford a down payment
Even if you’re taking advantage of a government scheme, you’ll likely need to come up with some money for a down payment. So start saving! Try to put away as much money as possible so that you can afford a larger down payment – even if it’s not enough for a traditional mortgage, every little bit helps.
3. Find a guarantor who is willing to co-sign the mortgage agreement with you
If you’re having trouble getting approved for a mortgage on your own, you may be able to get someone to co-sign the agreement with you. This means they will be responsible for making the payments if you can’t – so make sure you choose someone who is financially stable and trustworthy. This usually has to be a family member for lenders to accept.
4. Look for No LMI loans
Non-conforming lenders offer low deposit loans with a guarantor where the guarantor’s property is used as security for the loan. The main advantage of this type of loan is that it allows you to purchase a property with a deposit of as little as five percent.
5. Apply for a mortgage and get pre-approved by a lender
Once you’ve saved up enough money for a down payment and found someone to co-sign the mortgage agreement with you, it’s time to apply for a mortgage. Getting pre-approved by a lender will give you a better idea of how much money you can borrow and what your interest rate will be.
It’s important to compare different lenders before you choose one – be sure to look at things like interest rates, fees, and repayment terms.
If you’re struggling to buy a house because of a small deposit, don’t despair! There are solutions out there that can help. With a little bit of research and planning, you can make your dream of homeownership a reality.