Hi everyone this is your Tampa Bay Realtor Lance Mohr and in this video I'm going to
give you four ways on how to buy a house with no money down.
Before I get into the four ways to buy a house with no money down.
I have to tell you.
I think it's critical before you buy a house before you go looking to make sure you hire
a good lender and when I say lender I'm talking a loan officer because a good loan officer
who knows what they're doing can make or break the whole process and it's the same thing
with the real estate agent.
You have to hire a good real estate agent who knows and understands lending because
the lenders and realtor's work hand-in-hand.
So what I'll do is.
I'll put a couple videos up above and how to choose a lender and how to choose a realtor
and you could watch those.
So let's talk about the four different ways to buy a house with no money down and I'm
going to go over four different types of loans and I'll sort of break each one down a little
bit.
So the first one I want to talk about is FHA and that's a government loan program.
It's insured by HUD which is Housing and Urban Development and so the FHA is a great program.
It's one of the most popular programs especially for first-time homebuyers.
It does allow for low credit scores.
You could go all the way down to 580 credit score at least from the time of
this video right now.
So it is a really good option.
The thing about FHA is it does have a three and a half percent down but FHA will allow
you to get the down payment as a gift from a relative.
So it's really really good and they're actually a little axed on some of these gifts.
So you could actually get the down payment and then you could actually have the seller
pay all the closing costs.
They'll allow the seller to pay closing costs up to six percent of the purchase price so
if they chase a really good option in it extremely extremely popular especially for first-time
homebuyers.
The second government loan I'm going to talk about is VA.
Hands down if you've been in the military and you're eligible, VA is the best program
period.
It's a hundred percent financing unlike FHA it doesn't have mortgage insurance.
It's going to stay with the life of the loan like FHA does.
VA has a one-time funding fee.
That's it.
The Veterans Administration covers the loan in case of default.
It's a hundred percent financing though allow seller concessions or the seller to pay closing
costs up to four percent of the sales price and that's more of a guideline than a rule.
You can actually probably go a little higher if you need to on VA.
Now VA is a little bit more of a stickler on credit and some other things but if you
fit within a VA loan it's an absolute killer loan program.
The next one.
It's the next two I'm going to talk about aren't really the government per se.
Like the VA and FHA.
So I'm going to go into conventional.
Now you might have heard of Fannie Mae or Freddie Mac.
Now that's a conventional loan.
They have down payments of three percent or five percent but liking in the other programs.
You could get a gift for that and you could also have the seller pay certain amount of
closing cost.
So it's a general rule of thumb when you're on a three percent or a five percent down
payment they'll only allow up to three percent toward the closing cost but if you go over
five percent then they'll allow up to six percent toward the closing cost.
Now one thing you might want to keep in mind depending on your lender.
You also may have the lender.
You may ask them if they could increase your interest rate slightly and then they can taste
some of your closing cost.
So that's another option as well the fourth.
The loan I want to talk about is a USDA.
Now a USDA is the USDA Loan is really meant more for rural but it's not always rural areas.
So I would go on the USDA website and check it out and I'll go ahead and put a link down
below and you could see if you fit within that.
Now if you live in a metropolitan area and you know living the outlining areas you're
pretty much not going to qualify but if you do it's a great program because it's a hundred
percent down but here's also the kicker.
So let's say you have a purchase contract at $100,000 then let's say the home appraises
for a hundred and two thousand dollars.
They'll actually let you use the additional two thousand dollars toward your closing costs.
So it's really neat and though allow up to a six percent seller concessions, so six percent
of the sales price that the seller can pay toward your closing costs.
So these are all great programs.
It really comes down to getting in front of a lender.
Hiring a lender someone who knows what they're doing because it's what programs best for
you it's not what program is the best but what program is the best for you in your situation.
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