How To Buy a Home With NO Money Down | Buying a Home with NO Money Down

Patriot Nation you're going to love this one I'm going to show you some real transactions I'm going to show you the last three transactions I've done where in the first one a home buyer that bought a home at $212,000 came out of pocket for $0 zero dollars at closing that's down payment that's closing cost that's escrows all zero and I'm going to show you the next transaction somebody bought a house for $198,000 and they actually got money back that's right they got money back $73 at closing they got a check written to them to cover everything down payment closing cost and escrows and you say well that's all wonderful great Kevin but there's no houses for sale in my area that much okay I'm going to show you a transaction for $312,000 approximately where the buyer only came out of pocket for 5,100 when normally they'd have to write a check for 26,000 I got it all the way down to 5,100 and some odd cents show you all that and I explain the strategy involved to get to it it's a combination strategy that I use and I'm going to explain it all so let's kick off this rodeo right now hi folks I'm Kevin Fagan I'm the mortgage Patriot on your side nestled here in the Hill Country above San Antonio Texas serving proud Texans and all you great folks all around the country so another great one today you're probably going to want to share this with your friends friends and family because again I'm going to go over my last three transactions and show you how I'm able to reduce cash to close the actual figure you're going to write at closing the check you'll write at closing I'm going to cut that down to bare minimum and very acceptable ranges for larger cases so as always uh hit the like and subscribe if you would it helps me really develop these YouTube algorithms and get my content out to you and speaking of content probably nine months ago I made this video right here it's been my most popular one lots and lots of people have been watching it uh zero down FHA loan where I show you how to combine strategies and try to bring your cash to close down to $1,000 or less well I got a lot of comments saying that's just not possible and uh I'm here to tell you with proof today that that is the case so I'm going to show you three examples of where I did that where two of those examples the borrower actually at closing got money back and another one where they only paid about $5,000 for over a $300,000 property when it's all said and done incredible so let's get into all that content right now I'd like to add clarity to two major points before I get into my actual examples of my recent closings the first one is this closing cost consists of three buckets I talk about the three buckets all the time bucket number one is your down payment bucket that could be three and a half percent in the case of an FHA 3 to 5% in the case of a conventional or 0% in a VA loan or USDA loan that's just bucket number one so even if you have a VA or USDA loan doesn't mean you're not going to be writing a check at closing because you have bucket number two which is your actual transaction cost there's lots of them you have processing fees you have underwriting fees you have appraisal fees you have inspection fees you have survey and you have recording fees just the list goes on and on so all that can add up to quite a bit that's just bucket number two bucket number three what is that that is prepaids and escrows your property taxes and your property insurance have to be prepaid your insurance has to be prepaid 12 months and your taxes and your insurance have to be escrowed to the tune of about two to three months each so that's going to be a cost if you will for the third bucket so in other words even if you have a VA loan they say well I have a VA loan I'm not going to be paying anything at closing no dead wrong you're going to be paying quite a bit at closing if any of those three buckets need to be filled the other point of clarity I want to make to you is this this is not a loan program in and of itself it is a loan strategy where I'm combining things I'm combining down payment assistance with seller concessions that's critical those two elements are going to play in all these situations so it's not a loan program I get calls all the time people say hey I like that loan program where you get your cash to close down below $1,000 that is not how it works we have to have things fall into place sometimes they don't always do it but more often than not if we follow my instructions pretty closely we can get these things on track and you can bring that cash to close number the check you will write at closing to a very low and acceptable number so let's look at all my examples right now and hopefully this will become clear okay let me show you this first example because it's a great example of using a zero down payment loan combined with seller concessions so let me show what I'm talking about this is a USDA loan example and it could be the same for a VA both of them are zero down in this example which only happened a couple months ago in May of this year you can see that the sell price was $225,000 interest rate here this is what a closing statement looks like by the way a closing disclosure it's basically a tally of all the cost and all the information at closing you scroll down to the bottom of the first page it says closing cost $1,699.42 but look at the cash to close right below that minus $2,200 what does that mean that means the buyer of the home didn't come out of pocket at all they actually got money back they got $2,200 back by using this loan and by using seller concessions if we go to the closing cost number of 10,699 look at it says here includes 6,967.50 that's for bucket number two that's your transaction cost see loan cost plus $3,731.92 in other cost what are those those your prepaids and your escrows that's bucket number three so even though he doesn't have bucket number one down payment he does still have to come out of pocket but we managed through the use of seller concessions which I'll show you right here the final numbers we got $5,731.67 in seller concessions we were also able to get them to pay for the title policy and some other items of $1,950.75 so we gave him almost $7,800 worth of seller concessions and we also got them to roll into the note the USDA fee so at the end of the day he got his earnest money back he put down $2,200 ahead of time and now he got that money right back at closing so incredible let's look at example number two so here's an example using an FHA loan because not everybody of course can qualify for a VA loan if you haven't served in the military or you don't live in a rural area you can't qualify for a USDA loan this is an FHA example using down payment assistance and seller concession let's see what happened so the sell price on this one is $198,000 and I get it a lot of houses aren't available at that price in the area but let's just follow me on this one as we scroll down through the closing disclosure your closing cost for this borrower was $17,469.97 they didn't have $17,469.97 they had about six or $7,000 but look at the cash to close what I was able to get it all the way down to look at the box that says $73.99 they got money back has a minus sign there the borrowers got $73.99 back at closing on closing this loan how is that possible and here's all your costs associated as you can see there let's go down to the final numbers you can see that we got uh seller credits of $9,500 that's what I helped negotiate for that and we also got other uh adjustments here in terms of down payment assistance you can see here at grant we got $693 worth of grant money so all told between that that was probably about $10,193 worth of credits we gave him so he was going to have to write a check for again $17,469 and he actually got $73 back at closing pretty incredible and you can do the same thing can't always guarantee that of course let me show you the last example this is probably more realistic now listen please because if you're very interested in me trying to help you and lower your cash to close then please comment in the comment section I need to get your comments and you need to tell me two things yes you're interested and where you're looking to buy please put yes I'm interested I'm looking to buy in city and state area put that in the comments please and I'll be able to follow up with you we'll have a short conversation and I'll be able to tell you what I think we can get you down to in terms of cash to close so let's look at this last example because this is more in line with the national averages for a first-time home buyer about a $300,000 house in this case it's a $312,000 home in the Texas area and if you go down on the closing document you'll see that the amount of closing cost without any help at all was going to be $29,288.55 the buyer didn't have anywhere near that amount of money so what did they end up paying at closing they wrote that check for $5,141.89 not bad how did we do that in this case again we combined down payment assistance with seller concessions to get that cash to close number way down so these are real world examples of what I do every single day with my clients and I can do the same thing for you I'm the mortgage Patriot Kevin Fagan on your side make it a great one END OF TRANSCRIPT