When you take out a loan to buy a home, a down payment is typically required and can range from 3% to 20%. But there are ways to buy a property with no down payment. A number of players are present on this field. These include brokers and lenders. There are different plans available for the prospective homebuyer to choose from.

Some of the schemes offer loans amounting to 100% or more of the value of the property. In most of these cases, a high FICO score is required; this is a credit scoring system invented by Fair Isaac & Co. That loan takes care of the down payment. The range of the loan can be from small amounts like $50,000 to a million or even more.

One point to keep in mind is that the monthly fee depends on the amount of the down payment. Also, if the down payment is less than 20%, the lender will usually insist that the buyer take out Private Mortgage Insurance (PMI). Most financiers allow PMI to stop after a couple of years, or when the principal amount is reduced by 20%.

In many cases, a second mortgage on the property, which is even available to people with bad credit, can possibly raise enough money for a down payment.

Generally speaking, the more you borrow, the more the interest and repayment fees are. But for mortgage loans, the interest and some of the expenses may be tax deductible. The important point is the ability to pay.

It is possible to sell the property with the liability. This can sometimes generate enough funds to cover a down payment on a new home. In cases where the lender goes bankrupt, the obligation to pay would remain.

The US Department of Housing and Urban Development (HUD) offers free advice and support.