No money down, using OPM for first Property

[Frank Contreras]

Hi Everyone, 

Can we really get a loan from bank and not pay any down payment?  When getting quotes from different sources, they all require some type of down payment. Since I'm just getting started, I don't have the full amount of cash to fund entire project, like the season vets on here. I have read books stating "No Money Down, USE OPM". Can we really get sellers to pay our down Payments for us or is everyone just refinancing there current mortgage so they can start there investments or asking family members? How did you or how are you funding your  current or first project if you didn't have the full cash for starting out? What strategies are you all implementing to get your projects funded, when your not wanting to use your own cash?

[Bob Okenwa]

@Frank Contreras

Yes, there are ways of getting loans without using a down payment. You can use a VA loan if you or your co-borrower are veterans, or you can get USDA 100% financing but need to live in a rural area and approved zip code by the USDA. If you are looking to do a house hack and can occupy the property, then it is possible to get into a property with very little down or nothing down. If you do owner-occupy, you can see if you qualify for down payment assistance through your local county and then use an FHA 203k loan to finance the rehab on the property. The rehab funds are just rolled into your loan so you don't have to pay directly out of pocket. Be aware that you may not be able to combine down payment assistance with the 203k loan as I looked into that in my area and was told that was not an option. At the end of the day, the money has to come from somewhere, whether it be the government, family, friends, your own pocket or somewhere else. You just have to be creative and look everywhere for it. Of course what I mentioned isn't the only ways to get in without any DP, but just a few things off the top of my head.