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Most housepurchasers – especially those doing it for the first time – are faced with a tough challenge when it comes to closing costs. Enough consumers who have saved for many years may not have enough available funds to cover fees related to a major real estate transaction. But there are ways to at least minimize the costs, and there are several strategies for purchasing without incurring any immediate closing costs.

With excellent credit you may qualify for cash advances over and above the price of the property you’re purchasing. And if that happens, you can cover your closing costs with the extra funds you borrow. For example, you might be able to qualify for a cash advance of 107 percent of the selling price, enough funds to pay for the house plus all of your closing costs. If the price of the house you intend to purchase is $200,000 and you borrow $214,000, the first $200,000 covers the house and down payment, and the rest pays your closing fees. Because the lender considers you a low risk borrower thanks to your high credit rating, they see the bigger cash advance as good business for themselves, while it offers great convenience for you.

Another common way to avoid closing costs is by using a “80/20” or “piggyback” cash advance. This type of cash advance is actually two cash advances packaged together. One of the cash advances works in a conventional way, and is for 80% of the purchase price. The 2nd part of the cash advance is a smaller 20 % cash advance that is used to cover the down payment. So in reality, the lender is letting you borrow your 20% down payment. You can expect to pay higher rates on the down payment portion of the cash advance, but you get to purchase a house with essentially zero down.

Sometimes a seller will offer owner financing and also pay your closing costs, to help you close a transaction. Or you can purchase from your landlord and use a “lease purchase” contract. The way those work is that the landlord/seller lets you apply monthly lease payments toward the purchase price until enough cash has changed hands to compensate for the down payment. So you can avoid the biggest closing cost of all, by gradually using monthly rent to come up with your down payment.

If you are self-employed, be sure to investigate whether or not you qualify for special cash advances that are intended to help individuals purchase houses. Some apply to those who are veterans of military service, and they offer cash advances with little or no down payments and reductions in other closing costs. Other cash advances are created by the government to assist lower income families; and there are even programs managed through various non-profit organizations that fund grants to help consumers purchase houses. If you find a cash advance that fits your circumstances, don’t hesitate to apply for it – sometimes special grants and cash advance funds are budgeted and dispersed on a “first come, first served” basis and then they run out quickly.