Buying a home is every individual's dream. Every person wants to have a property in his own name. Many of us think that it requires a lot of money to buy property. Yes, it is true that it requires a significant amount of money. But, what if you can buy real estate with a small down payment? What if you can purchase real estate with absolutely no down payment? Yes, there are quite a few advertisements that offer a no money down home. But, beware of them! These may be scams. If you really want to buy no money down property, then there are a few practical tips that you need to follow. A no money down real estate policy means buying real estate with minimum possible down payment. If you think smartly and negotiate well, then you can crack a good deal. Tips to Buy No Money Down Real Estate Negotiate Before Buying Before finalizing a deal, negotiate the down payment with the seller. Negotiate in all possible ways to reduce the down payment amount. You can offer him a high total price of property in lieu of accepting a smaller down payment. A seller would usually agree to the higher price and reduce the down payment. After all, who would say no to a high price Borrow Money Another way is to borrow a sum of money from someone, at the least possible interest rate or at an interest rate that you can easily afford. There are people who lend money at low interest rates. If you are buying a house for the first time, then you can go for a loan. It is a home owner's grant and is offered by many states for first time house buyers. It usually provides you with three percent of the purchase price of your home. This could be the money that you need for the down payment. This loan may also provide financial assistance to the borrower by subsidizing the interest rate. Buy with a Lease Option Many people do not know that they can buy a property by going into a lease agreement. This is an uncommon practice, but you can try it out. In this scheme, property can be taken on rent, with an option to buy. Negotiate a deal, in which you will be paying a specific amount of money at regular time intervals, during the term of lease and this can be considered as your down payment. You buy the property after the lease period is over. Getting a No Money Down Home Loan You can go in for an option of getting a home loan with no money down. Various banks and lenders offer a 100% financing program, but these programs have major drawbacks of high mortgage payments and a compulsion to carry Private Mortgage Insurance (PMI). PMI adds a cost of $50 - $100 per $100,000 borrowed per month on the cost of your mortgage. You qualify for the loan, only if you are ready to pay the PMI. Veterans Administration Financing Program Veterans Administration(VA) also offer a 100% financing program for qualified veterans. There is no limit on the amount you can borrow under the VA loan, and you can apply for other VA loans at the same time. Exchange Your Property You can offer a prized possession of yours to the seller, which will work as the cash substitute. You can offer him an unused car, a boat or a small house that is in good condition, which you no longer use or are ready to give up. Other Ways for No-Money-Down Real Estate Investment Offer Your Skills If you are a lawyer, a doctor or an architect, then, you can offer your services free of cost in exchange of the down payment. It would be beneficial for you and also for the seller. Find a Partner One option is finding another person interested in the same property. It will be helpful to you financially, but it is in such a situation that the issue of sharing the property arises. Be careful while going in for this option. Contact your legal adviser for this deal. Research More If none of the above options work, then research and try to find a seller who can sell you the property with no money down financing. Though small in number, but there are such deals available. You will be lucky if you can get such a deal. Buying a new home with no cash down is not a tedious task. There are many ways to do so, and you can opt for any of them as per your wish and convenience. Real estate investment gives good returns in the long term. With this I sum up my article. I hope the information proved to be of help to you.