There are a number of loan programs directed toward first-time buyers that allow the purchase of property with as little as 3% down.
The way they work is that a purchaser puts up 3% of the sale price and another party puts up 2%. Who puts up the additional 2%? Programs differ, but some choices include:
- A friend or relative providing a gift.
- A friend or relative providing a loan.
- An employer providing a loan.
- An employer proving a loan that does not have to be repaid if the individual stays with the company for a certain amount of time.
- A community group providing a loan or grant.
- A government agency providing a loan or grant.
- Amazingly enough, a lender who provides both 95% financing and a 2% loan.
For details, please contact local lenders and real estate brokers.