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This is a brief overview of the Zero Down Home Program for folks who want a luxury home or executive home in Northern Virginia.
I started this program because the recent shake-up in the credit markets took away most of the zero down home loans.
MOST of the zero down home loans vanished, but NOT ALL.
The zero down home loans that vanished were the high-rate loans for buyers with crummy credit.
We still have sensible zero down loans, with sensible rates, and sensible terms.
The good zero down loans with attractive rates for folks with good credit are still around.
The GOOD NEWS is folks with good, clean credit and strong finances CAN get a lovely home with zero down-payment.
The BAD NEWS is most lenders and Realtors don’t pay attention to the few banks that are offering zero down home loans.
Find out for yourself. Just pick up the phone and call any Realtor or lender and ask, “How much down payment will I need to buy a $700,000 home?”
Go ahead… try it.
Chances are they’ll say you need $70,000, or $140,000 cash down to buy a $700,000 home. If you ask for a zero down loan, some might even say something like, “Oh gee, the guidelines from the investors are so tight now… nobody can get a zero down loan right now… even 5% down loans are tough.”
Why do they say that?
Well, there are two reasons:
1. That person on the other end of the phone isn’t up-to-date on the market. They don’t want to deal with the extra paperwork and documentation they must generate for you to get a zero down loan.
2. When a mortgage company places your loan with a lender, that mortgage company earns a fee. Loans with higher down payments pay higher fees, while loans with low down, or zero down pay low fees.
The more you put down, the more money they make, so some loan reps will say practically ANYTHING to get you to cough up the biggest down payment possible.
Look, I’m helping folks buy lovely homes in upscale communities with zero down-payment.
I’ve been matching my buyer-clients with zero down lenders since Ronald Reagan was President of the United States.
I get invited to speak at conventions of top-performing agents from all over America, and share my experience with zero down loan programs.
Some colleagues call me “THE Expert” on zero down home loans. Whatever.
All I know is that I know the zero down loan market better than most lenders.
You can find out how to contact me, and find out if I am the best person to help you by calling the number that I will give to you in just a moment.
Folks who are unfamiliar with zero down loans for high-end homes sometimes ask me questions like:
“Why would I want to go zero down if I have plenty of cash for a down payment?”
“I could pay CASH for the entire purchase price of the home right now. Why would a guy like me even think of a zero down home loan?”
“My father told me to put down the largest down payment possible, then pay off my mortgage as fast as possible.”
“I want to move-up now while prices are low, but I need to sell my present home before I can buy the next home. Homes on my street have been on the market for a year and haven’t sold. How can I get rid of my house so I can buy-up?”
Good questions. Thoughtful questions.
Stop for a moment and look at the long-term earnings you are getting from your portfolio.
The average annual earnings for the New York Stock Exchange in the 20th century was 11%. That’s factoring in the Great Depression, the stagnant 1970’s, and the 1987 market crash.
Let’s say your portfolio is in line with the average 20th century return, and you will earn 11% per year, compounded over the long term.
Now, suppose you buy a $750,000 house. You get a 6% home loan.
If you put down a 20% down payment, you’ll be cashing-in $150,000 that would have earned 11% compounded, and sinking that money into dead equity.
What is the rate of interest you will be earning on your $150,000 in dead equity in your house? Zero, zilch, nothing.
Sure, you’ll reduce your mortgage payment, but you will be saving only 6% by not borrowing the cash down payment.
So, why would you give up an 11% compounded return to save paying 6% on your mortgage?
You can keep your cash invested in your 401K or other high-yield investments, and get a luxury home in an executive community with zero down.
I could do on and on.
Enough said.
If you see the benefits you could get having a zero down home loan, and you want to find out how to do it, give me a call at 703-590-2252 between the hours of 11:00 AM and 3:00 PM, Monday, Tuesday, or Thursday.
You must have good credit, stable employment, and a track record of paying all of your bills on-time.
If you have bad credit, shaky credit, marginal credit, late payments, judgments, or unstable employment, I cannot help you get a zero down loan. (I may be able to help you get a low down loan)
If your credit is good, your employment is stable, and you are financially savvy, give me a call at 703-590-2252 so we might assess your options. Call Monday, Tuesday, or Thursday between 11:00 AM and 3:00 PM.
We’ll talk about how we can help you get your dream home with a sensible home loan.
I’ll listen carefully to your goals, and if I think I can help you I’ll show you what to do next. If I cannot help you, I’ll let you know that too.
Best wishes to you in your home search.
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