An individual can acquire a home loan without making downpayment by fulfillment of certain conditions such as higher rate of interest, good income levels, and government programs and so on. If you don’t have cash in hand for making downpayment but good credit score, then you can surely approach bank for this facility. It depends on the bank to waive off the downpayment as of now.
Decades ago, it was really possible to get a home loan without making downpayment. But the recent scenario has changed considerably. Banks have become stringent with regard to their credit-lending activities. In most of the cases, downpayment is always essential for a bank.
You are not having right amount of cash as required by the bank with reference to downpayment. But your level of income is stable as well as substantial. If such a situation is present, then you may contact the bank executive. Have a detailed discussion regarding your issues. You should request to the bank executive that you won’t be making downpayment while taking the loan. Instead of that, you can go for other alternative. A suitable agreement can be entered between you and the bank regarding the new home loan terms.
Good income and credit score
For getting home loan without making downpayment, you must show your stable and good income. This must reflect in your bank and income statements. If you have not availed any loans or are paying off credit cards timely, then your credit score will be much higher. This will surely benefit you in your home loan processing.
Rate of interest
The bank may ask you to pay higher rate of interest as compared to other borrowers. This will be manageable for you if you have good income level.
Innovative bank scheme
The bank comes up with schemes such as granting two types of loans so that the downpayment amount is covered. The rates of interest or the tenure will be different from each other. You are not actually paying amount from your pocket. But you are borrowing it and then paying it again as downpayment.
Other schemes
If you had helped your friend in building his house, that friend will surely help you when you need finance. You can borrow money for downpayment from your friend. Obviously, your friend will not charge interest rate from you and you can repay him in convenient installments.
Government housing programs
There are number of government housing programs organized at regular intervals. You must apply for these programs without fail. Such programs provide the facility of buying homes without making downpayment. Though this requires a matter of luck, you must not fail to apply. You can get an opportunity to own a house at low costs or without making downpayment.
To do or not to do downpayment
It is advantageous to make downpayment. You get lower interest rates and will cover some portion of your huge loan amount.
Thus, it is advisable to have enough savings for making downpayment. But if you do not have time to collect enough savings, then you may go for other options.
