No Money Down Real Estate Investing

Do you want to own your own home? Most people do - after all, buying a home for your family is the big American dream. Do you think the dream of a free home is out of your reach because you need a fistful of cash for the down payment? Think again! There is good news for you! Over the past ten years, the real estate industry has been through some major changes. There are new laws, new policies and new opportunities and new government housing grants available. And, the person who benefits most is you, the buyer. Here's the story: The rules used to be that home-buyers needed to have 20 percent of the cost of the house on-hand to make the purchase. In the old days, if you wanted to buy a house that cost $100,000, you needed to have $20,000 at your disposal.

For millions of Americans, coming up with a down payment this high was - and still is - simply impossible. Let's face it: how many hard-working people have $20,000 in the cookie jar? The days of needing to raid the cookie jar are over. First of all, the norm for a down payment is no longer twenty percent. According to a survey of buyers conducted in early 2003 by the National Association of Realtors, less than half of all buyers put down 20 percent. Among first-time buyers, 33 percent kicked in less than 10 percent of the purchase price. But for many people, even a 10 percent down payment is not realistic. They don't have it tucked away because they are juggling double shifts just to pay the rent. Millions of Americans give more than half of their paycheck to the landlord. What's left goes for groceries, car payments, medical costs and other basic living expenses. Sound familiar? In fact, the amount that many people pay for rent every month is often HIGHER than a mortgage payment would be if they owned their own home. This means that the cost of a monthly mortgage payment is not a barrier to home-ownership.