I Don't Have a Lot of Money Saved. Can I Still Buy a Home?

Buying a home is a major goal for many people—but saving up tens of thousands of dollars can feel impossible. The good news? You can buy a home with little money upfront if you understand your options and plan carefully. Here's how to do it.

✅ 1. Look Into Zero-Down Mortgage Options

Several government-backed loan programs allow qualified buyers to purchase a home with no down payment.

VA Loans

• For eligible veterans, active-duty service members, and some military spouses.

• No down payment.

• No private mortgage insurance (PMI).

• Competitive interest rates.

USDA Loans

• For homes in eligible rural and suburban areas.

• Income limits apply.

• No down payment.

• Low mortgage insurance costs.

Pro Tip: Ask Lime Rock Realty if the home you're interested in falles within the USDA’s property eligibility map!

✅ 2. Low Down Payment Loans

If you don’t qualify for a zero-down loan, you might still be able to buy a home with just 3%–3.5% down.

FHA Loans

• Backed by the Federal Housing Administration.

• Down payment as low as 3.5%.

• More lenient credit requirements.

Conventional 97 Loans

• A special type of conventional loan requiring just 3% down.

• Must be your primary residence.

• Often requires private mortgage insurance (PMI) if under 20% down.

 Non-QM, In-House programs, private loans

• Some banks offer in-house underwriting and unique guidelines that may allow for a lower down payment. Before you start shopping for a home, be sure to connect with multiple lenders and ask if they have any special programs you may qualify for.

✅ 3. Use Down Payment Assistance (DPA) Programs

North Carolina and some specific municipalities offer grants, forgivable loans, or second mortgages to cover your down payment and closing costs.

• Grants: Free money you don’t have to repay.

• Forgivable Loans: Typically forgiven after a set number of years in the home.

• Deferred Loans: No payments until you sell or refinance.

Where to find DPA programs:

• North Carolina's housing finance agency (HFA)

• Local nonprofits or housing authorities

• Some banks or credit unions partner with DPA programs

✅ 4. Ask the Seller to Cover Closing Costs

We can negotiate for the seller to pay some or all of your closing costs (called “seller concessions”). Depending on your loan type, the seller can contribute up to:

• 3% (Conventional)

• 6% (FHA)

• 4% (VA)

This can reduce the amount of money you need to bring to closing.

✅ 5. Use Gift Funds or Employer Assistance

• Gift funds from a relative or approved donor can often be used for your down payment and/or closing costs. Be advised that gift fund providers may be expected to provide your lender with some personal financial information.

• Employer assistsance programs (especially for teachers, healthcare workers, or public servants) may offer grants or home-buying bonuses. Some lenders offer incentives like closing cost contributions, appraisal fee reimbursements, and other benefits to help reduce your total cost to close.

• Lime Rock Realty's Public Service Provider Incentive If you are a healthcare provider, public service worker, active duty/retired military, teacher, firefighter, EMS etc. be sure to ask us about our available contributions of up to 1% toward buyer closing costs.

Final Thoughts

Buying a home with little to no money upfront is possible, especially if you're flexible and do your homework. Between low- and zero-down loans, assistance programs, and creative strategies, homeownership may be closer than you think. 

Next Steps:

• Get pre-approved with a lender that offers government-backed loans.

• Research local down payment assistance.

• Talk to us here at Lime Rock Realty where we are familiar with low-cost home buying.

You don’t need to be rich to buy a home—just informed. If you’re ready to start the journey, take that first step and explore your financing options today.