What options are there for buyers with no money down and no cash for closing costs?
Actually, very few. Since a mortgage payment will take a good percentage of your income, lenders will want you to be “involved” (meaning having your money involved) from the very beginning. There are options for low down payment (5% or less) mortgages such as FHA mortgages and there is always the possibility that the seller could absorb some of your closing costs (which are usually 3-5% of the selling price) but to buy a home with no cash down is a rare occurance. If you have cash for closing costs, though, and excellent credit, there are new options in the conventional loan arena.
