Despite the negative press you hear on the news concerning the real estate market and the changes in financing there are still good loans with good interest rates available.
Our team manager heard a so called industry expert on the news this morning saying you cannot get 100% financing these days but that just isn't the case. We are closing a deal tomorrow where the buyer is purchasing his first home and did not put any money down. He is participating in an Ameridream Program. The seller agreed to pay his closing costs and put down 3% of the purchase price for the buyer. The seller also agreed to pay $375 for the Ameridream Program fee. This is a great situation for a qualified and responsible buyer. Notice I said qualified and responsible. This type of loan isn't for everyone. I have noticed the underwriting for these loans has tightened up recently and I think that is a great thing. Too many people got this type of loan previously and ended up in foreclosure.
Also, last week I listed a home for a client and our first offer was a zero down buyer. The home is now under contract and again the buyer is not putting any money down to purchase this home. In this case the buyer is using the Nehemiah Program that allows the seller to contribute 3% for the buyers down payment. The seller is assisting with the closing costs and paying a $599 fee that Nehemiah charges for their program. The buyer will not have to put any money down to buy this house, now will he have to use his money for closing costs. How cool is that!
Most investments such as gold or stocks require you to fully fund the transaction with 100% of the purchase price. With real estate, you can purchase a $100,000 home with none of your money. You can leverage other peoples money to purchase a home. Leveraging other peoples money is probably the strongest reason to buy real estate.
Don't let the press scare you away from buying a home. The interest rates are good and there are still many loan options available.Rates this past week averaged 6.62 percent for a 30 year fixed rate loan and with some shopping you can do better than the national average. Give us a call to see if you qualify for one of these 100% financing programs.
Phone: 513-766-9099
