These days housing costs just keep going up and up, with the average home going for hundreds of thousands of dollars, depending on where you want to live. Besides having to earn enough for monthly mortgage payments, most people have an extremely hard time saving up for a down payment which in most cases is around 20 percent of the price of the house.

As an example, if you want to buy a house costing $200,000, then you might have to come up with $20,000. Mortgage lenders want this down payment because it shows them you have already invested in the house and are, therefore, less likely to default on the loan.

But if you qualify for it, there are actually ways to buy a house with $0 down. Do you want to know how to buy a house with no money down? Then keep on reading to see if you can qualify for buying a house with a $0 down payment.

Firstly, you need to have served in the military, be a member of a credit union, be a rural home buyer or otherwise meet the qualifications for certain mortgage lenders that allow 100 percent financing of a home.

Government-backed loans

Most of the time, a 100 percent financed mortgage has to be through government-backed loans, but not in all cases. Two types of such loans that require a $0 down payment are a Veterans Administration (V.A.) loan and the U.S. Department of Agriculture (USDA) loan. There are specific criteria to be able to qualify for one of these mortgage options.

V.A. loans

V.A. loans are for people who have served in the military. They are guaranteed by the Department of Veteran’s Affairs, which means the lender feels safer with them since if you default, they are also on the hook for paying off the mortgage. These loans don’t require a down payment; however, in some cases, there is a funding fee. The funding fee is meant to cover foreclosure costs if the borrower defaults on the mortgage.

The VA’s funding fee is a one-time payment that ranges between 0.5 percent and 3.6 percent, depending on the kind of mortgage, s well as if you have ever had a V.A. loan in the past or if you choose to make some kind of down payment to offset this fee. Some veterans are exempt from the fee, thus making their loan a 100 percent $0 down payment. Those exempts include:

Those exempt from paying the V.A. funding fee include:

• Veterans are receiving compensation for a service-connected disability.
• Veterans who would otherwise get compensation for a service-connected disability except that they are also getting retirement pay
• Veterans are eligible to get compensation based on the outcome of a medical exam before they are discharged from the military.
• Veterans who are still on active duty but are eligible for getting compensation for a disability.
• Veterans who were awarded a Purple Heart.

Surviving spouses of veterans who were otherwise eligible to get a V.A. loan. One other advantage to understand when you are looking at how to buy a house with no money down through a V.A. loan is that the V.A. doesn’t require the same kind of income requirements or minimum credit score as traditional lenders do(although the actual lender may require a specific minimum credit score). Plus, the V.A. requires the house to pass certain health and safety standards prior to the sale.

To get a V.A. loan, the veteran must have done one of the following:

• Served on active duty 90 consecutive days during wartime
• Served on active duty during peacetime 181 consecutive days
• Served six or more years in Reserves or National Guard, or 90 or more days under Title 32 orders, in which 30 or more of those days were consecutive
• Be discharged due to some kind of service-connected disability
• Be a spouse of a service member that was killed in the line of duty or died due to a service-related disability
• All in all, if you can meet these qualifications, you may be able to buy a house through the V.A. loan for a $0 down payment.
• USDA loans

Another government-backed loan to consider in your search for how to buy a house with no money down is the USDA loan. These loans are meant for certain buyers in specific rural areas if they meet low or moderate-income levels. They, too, require a lending fee (which can be added to the actual mortgage at closing, which still means you are getting a $0 down payment), which again protects your lender if the buyer defaults on the loan. While the USDA doesn’t require a minimum credit score, the actual mortgage lenders may, and if so, their minimum is usually around 640.

USDA loans are meant to encourage the development of specified rural as well as urban areas. The borrower isn’t the only one who has to meet certain guidelines, and so does the house you want to buy. The house must be located in the specific areas the USDA covers. You can find this info on their website at https://www.usdaloans.com/. Also, the house is required to be a single-family home, must be the buyer’s primary residence, and can’t be a working farm.

The buyer(s) must have a combined gross income no higher than 115 percent of the average income of the county in which the house is located, their debt-to-income level can’t be more than 45 percent, and their FICO score has to be 640 or more for better qualification chances.

Physician mortgage loans

Medical professionals could also be qualified for a type of $0 down payment mortgage loan. Those who qualify include:

Medical Doctors (MD)

Doctors of Osteopathy (D.O.)

Doctors of Dental Medicine (DMD)

Doctors of Dental Surgery (DDS)

Doctors of Podiatric Medicine (DPM)

Doctors of Veterinary Medicine (DVM)

Doctors of Optometry (O.D.)

Doctors of Pharmacy (PharmD)

Doctors of Chiropractic (D.C.)

Nurse Practitioners (NP)

These loans don’t mandate the buyer to get private mortgage insurance allowing a high debt to income ratio, and they could have a little income history. For instance, a physician mortgage loan doesn’t include student loan debt when calculating the debt-to-income level, which is a huge help since most medical professionals have a large student loan debt. The only real issue with this type of loan is it is not available in all states, so check with the state in which you want to buy a house.

All in all, these are the main types of loans in which you don’t have to have a down payment. There are possibly other specific mortgage lenders who can show you how to buy a house with no money down, but each has its own specific requirements for things like credit scores, debt to income levels, etc.

However, these are few and far between since if the borrower defaults on the loan wouldn’t be guaranteed by a government agency, so the lender would lose their money if the home gets foreclosed on. So if you want to know how to buy a house with no money down, it means you must meet one or more of the above requirements. Happy house hunting!

What is generational wealth and how to build it (generational wealth, get generational wealth, build generational wealth)

Generational wealth is when someone, usually a relative, passes down their monetary assets to their children, grandchildren, etc. The recipient will get generational worth via things like a house, stock, bonds, businesses, or even cash. It could occur when the older person dies, or in some cases, they get generational wealth prior to a relative’s death.

In other cases, the parents or grandparents help the children build generational wealth via things like paying for their college education so they can get a well-paying job or buying their child their own home, etc. Since the money to do it came from older relatives, it is a form of generational wealth.

Generational wealth is important for success.

The ability to build generational wealth and, in some form or another, give it to younger generations is vital for the younger ones to be successful without having actually to earn that status. While those who can’t get generational wealth via an older relative have to work harder and longer to be successful, those lucky enough to get it is set for life immediately.

Sometimes it could make the recipient less cautious in financial matters since they have additional funds to bank on, while lower-income recipients are normally much more cautious since they don’t have a way to get generational wealth.

Is Generational Wealth Unfair?

Many feel that generational wealth is unfair since not everyone can have or get it. Unless you have rich relatives, you will have a rougher time building generational wealth. Some surveys have shown that, at times, things like race, religion, and gender can affect whether or not someone can build generational wealth.

As they often say, it is not what you know, but who you know that gets someone ahead in the world. So, if you aren’t born into generational wealth, it’s not likely you will get the advantages it offers. Others believe that these things don’t matter and that anyone can start the cycle of building generational wealth by working hard and coming up the ranks, i.e., by being an entrepreneur and starting your own business, making good choices in the stock market, etc.

However, if you must start from nothing, then, of course, it will take someone much longer to get generational wealth and be able to pass it down to the younger generations. It takes careful planning, having the right objectives, and creating a successful strategy to begin the cycle of generational wealth in your family.

How to Build Generational Wealth From Zero

Firstly, you can’t build generational wealth if you don’t even have enough money to feed, clothe and house yourself. You have to have all those settings and then find ways to earn additional money or get funding from somewhere to start it all off, i.e., take out a loan for a business venture or get someone to sponsor you for it.

Some of the ways to grow your cash flow and have more money include investing in stocks and bonds, buying real estate, starting a business, investing in higher education, being sure to have insurance policies in case of emergencies, investing in cryptocurrency, etc.

It also helps tremendously to get a financial planner involved who can mentor you and get you going in the right direction. This doesn’t have to be someone you pay to do it; many times, you can find a mentor who is willing to guide you and even, in some cases, invest in you monetarily to get the ball rolling and help you build generational wealth.

So, what are other ways to get the ball rolling and build generational wealth? For one thing, you need to pay off any debts you have, not wrack up expensive bills, and create an emergency fund with enough cash in it to cover sudden expenses like medical bills, car break-downs, etc. You also need to start a savings account, even if you can only put a few dollars into it a month, then not touch it for trivial things or impulse buys.

Plus, to start generational wealth off in your generation, you can do things like buy a life insurance policy on yourself and pass it down to your children, so they have money to start to build generational wealth in their life as well.

Another way is to form a trust fund that they inherit after your death or when they reach a certain age. Trust funds are great because you can pass on generational wealth and avoid probate, which is a process that happens when someone dies, and their will is carried out. However, it is still vital to have a will as otherwise, any assets you have may not be divided up in the manner you intend to occur.

Educate the younger generations

You must also teach younger generations all about the value and importance of building generational wealth. This way, they won’t squander any funds or assets you may leave them and thus end the cycle of generational wealth. Do things like explaining how credit works, how to build and maintain a budget, how to save money, etc. Be sure to add in any mistakes you made along the way so they can hopefully avoid them in their own financial journey.

All in all, those who do have generational wealth or are able to build generational wealth will be better off than those who don’t. But anyone can get themselves on the right path to get generational wealth or at least start the cycle so their children and future generations can get the benefits.

You may be the first person in your family to start this cycle, but it will pay off for future generations monetarily. Every generation had to start somewhere, so just because you didn’t inherit or get generational wealth in your lifetime doesn’t mean you can’t pave the way for your children to have it.

Just make sure you have the right priorities and make the right decisions for the long-term, and soon you will be well on your way to ensuring generational wealth for your future and the future of your children and other generations to come.

Which bills should you pay first in the event of an emergency?

An emergency can happen to the best of us and cause problems with being able to pay monthly bills and other expenses.

However, all those creditors and places like the grocery store or the electric company aren’t going to be happy if you can’t pay them, so who do you prioritize when things get tough money-wise?

The most crucial bills are those covering the necessities in life, such as housing, transportation, food, water, and heat (if it’s winter).

Here is more info on the reasons why these types of bills come first:

1. Housing Bills – Everyone needs a place to live and have shelter from the elements, and to have a safe place to sleep. So, it’s vital to pay your housing bill first, or you could become homeless. Normally, if you don’t pay your rent or mortgage bill, either the landlord or the bank that holds your mortgage will force you out of the house within a few months.

So, suppose you are in a money crunch. In that case, it’s best to talk to your lender or landlord and negotiate a temporary lower payment or some other solution until your money situation improves. For instance, if you can afford half the normal amount, suggest that and come up with a plan to make up the difference later.

2. Utilities – After you have secured your housing, you must keep up your utility bills or face no water, no electricity, or no natural gas to run your home devices, appliances, etc. If you fit into the programs, there are special programs that help low-income folks pay this kind of bill. Call your utility company, explain the situation, and likely they can recommend a solution. If you aren’t low-income and just have some sort of temporary money crunch, then explain that to them and offer to pay a portion of the bill, etc.
3. Food and other Household Essentials – Next comes other household bills such as food for you and your pets (if you have them), soap to keep things sanitary and clean, toiletries like deodorant, and toothpaste and paper products like toilet paper. There are a few ways to cut back, such as using cloth washcloths and towels instead of paper, using generic cleaning products, not buying bottled water, buying fresh foods in season, and even growing your own garden if you have the space.

Plus, there are usually programs like food banks or churches, and other organizations that can provide food and other essentials to low-income recipients.

4. Transportation costs – If you want to get paid, you usually need some form of transportation to get to work, as well as to get the kids or yourself to school, etc. As stated earlier, if, for instance, you have a car loan, then call up the lender and explain the situation, and they may allow you to do things like changing your payment date or refinance the loan, etc. Also, to save money on transportation costs like gas and insurance, you can consider selling your vehicle and using public transportation like buses or the subway if these are available in your area.

Another option is to sell your current vehicle, use the proceeds to pay off the loan, then purchase a less expensive model. If you decide to sell, look for a replacement car that has a low cost of ownership to keep your expenses low. Some vehicles are more reliable than others, meaning you don’t have to worry about expensive repair or maintenance bills.

5. Insurance Premiums – Speaking of insurance, you really should try to find a way to pay your premiums, especially for something like health insurance, in case of an emergency. However, as stated earlier, if you, for instance, sell your car, then you won’t have a car insurance bill to deal with anymore. Again, if you are low-income, you may qualify for free or low-cost healthcare, so that’s something to look into as well.
6. Court-ordered bills like child support or alimony – These bills likely come straight out of your paycheck, but if not, you need to pay them if possible. Otherwise, the agencies in charge could garnish your pay, take your tax refunds, etc., to meet that obligation without your consent.
7. Unsecured Debts – These are bills like credit cards and personal loans. If you absolutely don’t have the money to pay these, then it’s best to save your available funds for the previously named bills. However, if you have at least some money to spare after those debts, you can contact your lender and try to negotiate things like a lower interest rate or partial payments until you are back on your feet financially.
8. Student Loans – If you have these, there are multiple programs that could help make payments easier, such as forbearance, income-based payments, or even forgiveness if you meet certain categories, such as working in a public service job like teaching. If not, you still need to call the lender at least to explain your problem because they can do things like garnish your pay or take any refunds from you, such as a tax refund, if you just ignore the situation and don’t pay them at all.

Buy a house with no money down

The bottom line is that emergencies and money problems happen to all of us from time to time. The worst thing you can do is panic and do nothing. The best thing you can do is put yourself on a strict budget, negotiate with all your creditors and lenders, and stop impulse buying like that candy at the grocery store line or that expensive cup of coffee you may have been drinking every day.