Buying an apartment without a down payment is a lifelong dream for investors and homeowners. After all, everyone wishes to enjoy a hassle-free home-buying process without worrying about having enough to put towards it. Fortunately, multiple avenues allow buyers to enjoy no-down payment apartments. So, one’s limited funds should no longer restrict one from having a home. One can resort to many ways to get apartments without a down payment.

1. Take money from investments
Some people have dynamic investment portfolios. One can use other investments to make a down payment. However, it is recommended that one liquidates only those investments that do not yield considerable tax benefits or high returns.

2. Do some homework
Planning is essential if one wishes to invest in a no-down payment apartment. One must do the math to set aside a fixed percentage of monthly income. Also, one must ensure one can comfortably bear this amount every month until the loan term. Since one is not paying anything down, one primarily buys the apartment monthly. This amount will be higher than what one would have to pay if one were making the down payment. So, ensure this financial burden does not overwhelm one and that one plans better to avoid regrets.

3. Liquidate a few assets
Although liquid cash may not be available for the down payment, if one fails to get a favorable loan term, consider liquidating a few assets.

4. Consider house hacking
House hacking refers to an arrangement where one makes one’s primary house a rental. So, look for a personal home with a multi-unit, wherein one can set aside a portion for one’s personal use and put the rest on rent. This method is popular amongst the younger generation, who wish to buy real estate as a medium to boost their income streams.
Further, it enables younger people to begin investing earlier, with little to no down payment. Several down payment assistance programs let one buy a low down payment property. Though one must make some payments, it is an incredible deal. Multiple such schemes enable homebuyers to make a minimum down payment. Some such programs include:

• FirstHome Program
• FirstDown Program
• DownPayment Advantage

Through this, the tenant will bear the mortgage and other housing costs. So, when one has sufficient funds, one can move out and convert the entire property into a rental apartment. Consequently, the cash flow will increase further. Since lending agencies demand a lesser down payment or no down payment in owner-occupied properties, it is the perfect method for someone who wishes to buy an apartment by paying monthly.

5. Take a loan from an organization
These days, several companies are willing to provide short-term loans to their loyal employees. This loan term usually does not exceed one month’s salary (but is negotiable). However, factors like employment tenure with the organization and one’s relationship with one’s HR and immediate supervisor will come into play when negotiating the loan amount and terms. Such loans do not need any documentation and are usually approved instantly. Moreover, many organizations will not charge any interest from one. So, one can be stress-free and use this amount towards down payment.

6. Choose cheap apartments
If one does not have the surplus to pay towards a down payment, consider putting money into cheap apartments. Look for properties that cost less. It will make the down payment affordable.

7. Get a partner
Another creative way to buy an apartment is to look for other cash buyers who do not have adequate funds to pay for the down payment themselves. However, ensure they do better with their partners. Please know that getting more people on board may sometimes put one in a fix, as one now has more things to figure out and divide. Sometimes, things may get messy. So, always go with a person one can trust. Their financing can help one buy a house without a down payment while one caters to cracking the deal and managing this investment.

8. Request for financing assistance from relatives or friends
Sometimes, one cannot secure a loan without a down payment, or the terms are stringent. If this happens, and one does not have the money for a down payment or does not wish to pursue formal mediums to get funds, consider getting financial assistance from a friend or a relative. The best part of getting help from one’s kin is that it will be interest-free. One can ask for a relaxed term and repay the principal once one has the funds. Further, they are lenient and won’t charge any collection or penalty fee if one does not repay in time. But we recommend keeping one’s promise and always making timely repayments, or else it will strain one’s relationship with them, and they might never consider lending one in the future.

9. Leverage other property
Having a property with equity and a good credit score naturally gives one an edge over other buyers. So, leverage the property’s equity by availing of a home equity loan or an equity line of credit. These loans let one take a line of credit or loan up to a significant percentage of the property’s equity. It makes accumulating the cash for the new property using one’s current property’s equity easier.