Buying a home with no deposit, also known as a no-money-down mortgage, can be an appealing option for homebuyers who may not have the financial resources for a traditional down payment. While it can be a viable path to homeownership, it’s crucial to understand the potential implications and explore alternative options to ensure a well-informed decision.
There are several advantages to buying a home with no deposit. It enables individuals with limited savings to enter the real estate market sooner rather than later. It can also free up cash flow for other expenses, such as closing costs, moving expenses, or home repairs. Historically, no-deposit mortgages have been used to increase homeownership rates among low-income and minority households.