Don’t let a lack of down payment stop you from owning a home. Here are 5 ways you can own a home without a down payment:

1) Gift Funds:
Lenders generally allow you to use funds given to you as a gift to go towards your down payment. These funds must come from a relative, i.e. grandparents, siblings, significant other, etc.

2) 401K:
You can borrow from your employer-sponsored 401k to fund your down payment. On 401k loans, borrowing limits are generous. You can borrow up to the lesser of $50,000 or half the value of the account.

3) Down Payment Assistance Program:
Since 2002, the National Homebuyers Fund has provided more than $200 million in direct grants to more than 30,000 buyers. These funds are usually available in certain states on a loan of certain sizes. It is a good idea to speak to a Realtor who can point you in the right direction before assuming you qualify.

4) Special Government Services :
If you or your spouse is a current or former member of the military, your family may qualify for a VA Home Loan backed by the federal government (Department of Veteran Affairs). These loans require no money down.

5) USDA:
If you are buying a home in a rural or outer suburban area, you may qualify for a USDA Loan, also called a “Rural Development Loan”. This loan is designed to bring housing within reach for lower-income country dwellers.

We are sure if you put one of these 5 alternatives into place, you will be in your own home in no time.

For more tips and alternatives on how to own a home, or to make the home ownership process smooth and pain-free, keep following FACE TO FACE REALTY ( @Face2FaceRealty ).