Not being able to save up the deposit is the most common deterrent for buying a home for most people.  In fact it is quite possible to buy a home with little or no deposit. Deposit programs are created to help move these people to own their homes without making a deposit.

HUD Financing

The Housing and Urban Development (HUD) provides special financing for first time home buyers. This program allows low income families to secure loans towards their first home ownership. There is no deposit and or closing fee as it is a need based scheme. In addition the foreclosure homes from HUD can be bought without a deposit.

$10,000 Deposit Gift Program

Potential home buyers can avail the $10,000 Deposit Gift Program to buy a home with no deposit. Gift deposit programs allow up to $10,000 or 5% of the purchase price, whichever is lower.

Homes for farmers and police personnel

There are federal government programs to help farmers and the police personnel to obtain home ownerships.  People with low incomes and those who want to live the rural areas can avail the farmer’s home loans without any deposit.  The loan is provided by the Rural Economic and Community Development Administration with subsidized monthly payments and very low interest rates such as 1%. Similarly special federal programs encourage police personnel to live in home in the crime prone areas.  The programs allow the police offices to buy homes in these areas without any deposit.  

Special VA loans

Veterans with a credit score of at least 600, your chances of getting a no-money-down loan are greater since you can avail the special VA loans. All active and retired members of the military service, veterans, POW's and MIA's and their unmarried widows are eligible for this benefit.  The benefit is applicable to all branches of the service.

Lease purchase or Owner financing

In unfavourable market conditions, the home sellers in an effort to sell their home quickly may agree to owner finance or lease purchase plan. This requires caution and the agreements need to be drafted by an attorney.  Legal forms such as the Lease Purchase forms must be used. Under the Lease purchase agreement, the seller agrees to sell the house at an agreed price at a future date. The buyer pays a monthly payment over and above the monthly rent.  An additional payment towards the deposit savings may also be there in some agreements. If the buyer decides not to buy the house later, the additional payments made to the seller are not refundable. The buyer decides to buy the house; he can complete the transaction by securing a mortgage from any lending institution

Line of credit

A line of credit secured by the equity in a property can be used to acquire another property without any deposit. The homeowner is able to purchase another property using the accumulated equity in his original property without selling it. As so many methods are available to purchase homes with little or no deposit, the goal of home ownership need not be a pipe dream. Buying a home without a deposit should be made easier with the help of the above tips