What could be better than buying a new home without putting anything down. No cash up front changes the game considerably doesn’t it? Now you suddenly find that you really can afford to own a home.

There’s only one little catch, you have to be willing to pay the higher interest rates that are associated with no money down mortgages. The reason for this is that you are a higher risk because you’ve not invested any of your own cash into the home. Not a bad trade off really, especially if you just don’t have the cash for that down payment.

If you prefer not to pay the higher interest rate there are things you can do to make it appear to the mortgage company that you have your down payment.

1. Rent – you can ret with an option to buy. This needs to be set up properly so that the agreed upon portion of your rent is credited towards your down payment should you choose to exercise your right to buy.

2. Owner Refinancing – Have the owner refinance the home so that he/she receives the cash from the loan and you give the seller a note for the balance of the sellers equity.

3. Higher Offer – Offer the owner more than the asking price to work the down payment into the asking price. On paper, it looks like you’ve made your down payment.

4. Friends & Family – Borrow the down payment from friends and family and then set up a repayment plan with them.

5. Home Equity Loan – If you have equity in a your home you could use that for your down payment

Today’s economy is leaving homeowners with many options. All you have to do is find what’s right for you.