ANYONE Can Buy a Home in Texas with $0 Downpayment

Buying a home in the Austin area usually costs thousands of dollars. But did you know that they are normal, easy ways for you to buy a home with a low or even $0 down-payment?  In fact, I just worked with a young couple to help them buy their first home and they were GIVEN a $2000 check at closing instead of paying a dime! I bet you’re about to turn this video off because this sounds too good to be true. Well, it’s not. Real people have used this real answer to save real money buying a home, for real.

In this episode of Real Estate, Real Answers, I am going to share with you a few of the ways that you can buy a home with zero money down and at the end, I’ll share with you how you can receive money when you close instead of paying money!

There are a number of programs available to home buyers like you here in the State of Texas to provide you with low or even zero money down-payment loans. Most of those programs have credit score requirements as low as 620 and you can qualify for some with a score as low as 580! I also know a lender who provides FREE credit repair who can usually help you if you have a score as low as 550. You could qualify to purchase a home in a short amount of time and I can put you in contact with someone who can help.

If you are a first-time home-buyer or haven’t bought a home in a while, there are national, state and municipal programs available to you for with a low or zero money down-payment. Most of those programs pay for your down-payment with either a bond or a grant. A bond is low- or zero-interest loan that you pay back either during the course of the loan or when you sell or payoff your home. A grant is a form of down-payment assistance that DOES NOT have to be repaid!

Here in Texas, the Texas Department of Housing and Community Affairs (TDHCA) has Program 79. This program provides down-payment and closing cost assistance of up to 5% in the form or a no interest, no payment bond to Texas home-buyers.

There is a similar program called “Homes for Texas Heroes Loan Program” for Texas teachers, firefighters and state employees that provides down-payment assistance in the form of a gift that never has to be repaid!

U.S. Department of Agriculture (USDA) has a nationwide 0% down-payment loan program for people buying in rural areas and the Veteran’s Administration (VA) provides 0% down-payment loans to U.S. military veterans.You can use all of these programs, and MORE, to buy a home with zero or very little money down.

I told you at the end how you can receive money instead of paying money at closing. Many of these programs cover your down-payment but there can often be money that you owe at closing to pay for your closing costs. Closing costs can be quite significant – 2-3% of the purchase price! Even if your loan program does not pay for closing costs, if your agent structures your offer right, you can work it out for the all of your closing costs to be paid by the seller at closing! I recently able to help my clients do just that! They put up $2000 in earnest money for the home they were buying and at closing, they were given a check for that $2000 right back – essentially paying NOTHING for their new home!

I am a certified Texas First Time Homebuyer Specialist and can help connect with the right lender and buy a home with little of zero money down! If you have questions about how you can buy a home or about these programs, please contact me with the information below, and I’ll be happy to help!

If this episode has been helpful for you, would you mind doing me a favor and subscribing to my YouTube channel? I’m Kyle Pfaffe and I want to thank you for watching episode #18 – this is Real Estate and THAT is the REAL ANSWER!

Buying a Home – Make the First Right Step

You want to buy a home but for every good story you have heard you have probably heard another horror story from a friend who had a terrible experience buying a home. I have people tell me those stories all the time. How do you avoid those pitfalls? Where do you get answers? What are the right questions to ask? What is most important right now is that you know what to do first. If you start right, everything else can line up and you can buy a home easier and with a lot less stress than some other people you have heard about. So what do you do first?!
Before anything else, I want to say CONGRATULATIONS! For my wife and I, buying our first home was an amazing experience and we are so happy to own our own home! I want to help make this journey as smooth and stress free as I can for you.
The majority of people who want to buy a home start by looking at homes online. They discover features and finishes that they love for their new home in just the right neighborhood. My wife especially enjoyed looking at homes online and she stayed up very late – too late – too many nights doing so! It is exciting because you start to imagine yourself living in your new home! Your hopes are growing and the power of visualization is adding fuel to the fire the drives your insatiable desire to own your own home!
Other people start their journey by checking out some open houses. Maybe they have a particular neighborhood that they want to live in so they drive the area over the weekend, looking for open houses to peruse. Others wander around looking for any open house they can find pop in.
Some people start by calling a real estate agent they know and trust to tell him they want to buy a home and to ask for help. Pretty much all of these things are part of buying a home, but they are not the first thing you should do. The first thing you should to make buying your home as easy as possible is talk to a lender.
Why talk to a lender? Talking to a lender is a free, no obligation way to get the most important piece of information on buying a home that you can get – how much home you can afford. With a 15 minute conversation, a lender can give you a pretty close answer to how much you can afford. He will also tell you how much your mortgage payments would be for a home at that price. This is crucial information because I have found that for many buyers I work with there is often a difference between the amount they qualify for and the amount they are comfortable paying each month. You definitely want to avoid buying a home that you can barely afford to live in! In the notes below I’ve linked two amazing lenders that I regularly recommend to my clients.
You may be thinking, “That sounds like good information to have and something that I will eventually need to buy our home, but I don’t need to do that first, before anything else, right?” I would suggest to you that the information from the lender is so important to get first because it can radically change everything from that point on. You could find out that you can afford much more of a home that you thought. Now you are looking at entirely different homes online and visiting completely different open houses. You could also start looking at homes and allow your aspirations and hope to grow for certain homes. You can see yourself already living in a particular home and then find out that there is no way you could afford those homes. Now you feeling disappointed with anything else you start looking at.
Avoiding that pain and disappointment is why I personally will almost never show homes to a buyer if she has not spoken to a lender and gotten pre-qualified. I feel that I am not doing my job, that I am actually doing a disservice to you if I show you homes, let you fall in love with a home – maybe find your dream home – then have all of those hopes shattered when you find out you cannot afford that home. To me, that’s heartbreaking! Buying a home should be an exciting adventure and I want it to be as pleasurable and stress-free for you as it can be – so please talk to a lender first!
 
Anyways, I hope this REAL ANSWER has been helpful for you. Sign up at RealEstateRealAnswers.net to receive more REAL ANSWERS because no one likes fake answers. You can also ask your own questions and see the REAL ANSWERS to other questions. This is Real Estate and that’s the REAL ANSWER!
Tom Sawyer – NMLS #234589
Senior Mortgage Banker – Modern Mortgage – Managing Partner
512-291-5626
TSawyer@hlglends.com
John W. Burnam, Jr. – NMLS # 247530
Senior Loan Officer – SWBC Mortgage Corp – Oak Group
512-632-2012
John.Burnam@swbc.com

Part 5: Common Mistakes of First-Time Home Buyers

Looking for a Home Like Their Parents

It is very important for first-time homebuyers to remember that most people do not buy their dream home right out of the gate. Your parents or other family members and friends likely started out by purchasing a smaller house in the Greater Austin area. As they balanced what they wanted with what they could afford, their finances played a large role in determining what they purchased. As time went on, they paid down their mortgage and gained more equity in their home through appreciation. Only then did they trade up to a larger, nicer home in the Austin area. With that home, they had to worry less about how much the home cost and could focus more on finding what they really wanted.

As a first-time homebuyer, it may be very difficult to lower your expectations a bit. Do not let those expectations keep you from missing out on a great first home and keep you from taking advantage of the still very low interest rates available! When you have built your finances and some equity in your home, you will then have the perfect opportunity to move up to your dream home!

Buying a home for the first time is a very exciting time – do not let unrealistic expectations kill that joy! If you are considering purchasing a home or would like to learn about your options drop me a note. You can also check out my other blog post – What You NEED to Know Before You Buy a Home.

Own a home and thinking about moving up to your dream home? Download the FREE Guide >>> Timing the Market in 2014

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

    

Is Now the Time to Upgrade to a Bigger Home?

The real estate market for the Austin area has shown consecutive growth month after month for almost 2 years now. While it could a great time for any home owner to take advantage of the rise in home values, I think that this time could be a special opportunity for people who own homes that fit the profile and budget for first-time home-buyers. Let me explain…

Active Listings for First-Time Homebuyers2

The huge influx of people to Austin, rising rental rates and low mortgage rates have all contributed to a seemingly ever-rising demand for homes for first-time home-buyers. That demand has caused home prices for those first-time home-buyers to rise as well, increasing the possible equity for home sellers if they chose to sell in this market. Below is a report on the active number of listings on the market in Austin, Round Rock, Cedar Park & Pflugerville for between $130,000-$180,000, a common price point for many first-time home-buyers. As you can see from the graphic, the number of home available to would-be buyers has recently increased, but is still well below the levels we saw two years ago. 

If you own a home in near this price range and think your home might be a great home for a first-time home-buyer, now could be a great opportunity for you to take advantage of your increased equity and move-up to a larger home and also take advantage of the super-low interest rates yourself. If you are considering selling your home, learn how I can help you sell your home for top dollar and deliver a high net to you as well as help you find a new home to move into. Drop me a note if you are interested in finding out the value of your home. 

Interested in selling your home and saving some money on commissions? Ask me about my “Move Out, Move Up” program.

by Kyle Pfaffe, REALTOR®      e: KylePfaffe@kw.com      m: 512-636-9707      w: AustinHomes4You.com

The Kyle Pfaffe Real Estate Team