How to Buy a Home and Stop Paying Rent Forever!!

Common misconceptions about first time home buying

Many renters think they need tens of thousands of dollars saved to buy a home. The truth is, there are multiple ways to buy a home with low or even no money down. Here’s a guide you can use on your website to educate and motivate them.

Types of Down Payment Options

VA Loan

✅ 0% down payment required

✅ No private mortgage insurance (PMI)

✅ Competitive interest rates

✅ Available to veterans, active-duty military, and eligible spouses

USDA Loan

✅ 0% down payment required

✅ No PMI

✅ Property must be in a USDA-approved rural/suburban area

✅ Income limits apply

FHA Loan

✅ 3.5% down payment required

✅ More flexible credit score requirements (as low as 580)

✅ Ideal for first-time and low-to-moderate income buyers

✅ Allows for gift funds and down payment assistance

Conventional 97 Loan

✅ 3% down payment required

✅ Lower PMI compared to FHA

✅ Available to first-time buyers

✅ Requires a minimum credit score of around 620+

Down Payment Assistance (DPA) Programs

✅ State, local, and nonprofit programs offer grants or forgivable loans

✅ Can be combined with FHA, USDA, or conventional loans

✅ Some programs offer up to $8,000+ in assistance

✅ Often available for teachers, healthcare workers, and other essential service providers

How Renters Can Start Saving for a Down Payment Now

Even with low down payment programs, saving some money gives buyers more flexibility and leverage. Here are practical tips tailored to renters:

✅ A. Automate Savings

Set up a separate savings account just for your home purchase.

Use automatic transfers from checking to savings each payday—start with even $25–$100 a week.

✅ B. Budget Like You Already Own

Pretend you're already paying a mortgage. If your rent is $1,200 and a mortgage would be $1,600, save the difference each month.

✅ C. Reduce Big Expenses Temporarily

Delay major purchases (cars, vacations).

Cut down on subscriptions, dining out, or luxury expenses for 6–12 months to speed up savings.

✅ D. Use Your Tax Refund or Bonus

Many renters can make a strong start on a down payment with a tax refund, work bonus, or holiday gift money.

✅ E. Side Gigs or Extra Hours

A few months of part-time or weekend work can build a few thousand dollars quickly.

Gig economy income (Uber, Door-Dash, freelance) can go straight into a savings account.

✅ F. Consider Gift Funds

Many loan programs allow family members to "gift" money for a down payment.

A properly documented gift from a parent or close relative can cover all or part of your down payment.

✅ G. Leverage Local & State Programs

North Carolina (through NCHFA) offers $8,000+ in down payment help for qualifying buyers.

Your website can list these and direct people to your webinar to learn more.

Dewey Gamble, Broker

at Patrick Properties

Email: [email protected]

Cell: (919)772-1338