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Zero Down Mortgage for First Time Home Buyers when Buying a House



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how's it going everyone Matt Leighton

welcome back to another real estate

video hey guys super excited for today's

video I have with me here today rich

Thailand from Atlantic coast mortgage

and what we're talking about is 0% down

as a first-time home buyer not VA

financing something completely different

is it possible as a first-time home

buyer to get 0% down or is that just

like too good to be true

no I think most people know the 0% down

is out there it's a lot of credit unions

a lot of lenders nowadays are offering

this it just goes back to our economy

recovering and encouraging the home you

know first-time buyers and you know

particularly in the DMV region you see

Maryland DC Maryland and Virginia there

are a bunch of programs now for 0% down

it is strictly for the first-time

homebuyers that is something to keep in

mind so if you are currently owning a

home the 0% down won't be a viable

option for you but there are other

limited down ok so let's go through one

example program I'm trying to think if I

was a first-time home buyer and I want

to put 0% down what would I have to do

or what would I kind of lose by putting

0% down would I have to pay a lot of

mortgage insurance would I have to pay a

lot of fees all right yeah happen there

no great question so obviously with if

you're if you're looking for a 0% down

the one main thing is we're limited on

you know cash you know you're limited on

making the investment to purchase the

property but you have you know you can

afford it obviously

owning is better than renting so what

you will see in terms of a a sacrifice

if you will if you if you're trying to

compare to a 20% down 10% down 5% down

interest rate you're gonna see a

discrepancy with the 0% down interest

rate being slightly higher just because

the the it's a slightly added risk you

know to to the loan servicer you know

you're not putting anything into the

transaction in terms of a down payment

so there is an adjustment in terms of an

interest rate pricing so you will see a

slightly higher rate across

bored so definitely want to be cognizant

of that when when evaluating options and

you know doing your own search on the

Internet what about points so their

points on that loan can you give my

points you can buy points you know it's

you know some charge rate right out the

gate we do have some some terrific

programs that are you know zero point

quotes again the interest rates gonna be

slightly higher if you're just comparing

just a standard today are fixed but

there are zero point options yeah we

actually also for the state of Virginia

Maryland as well and DC OD they do have

0% down in which you can also finance a

portion of the closing cost so even if

like you don't have 0% down but you see

the closing costs and that is maybe just

pushing you to the limit there are

additional programs that you can finance

anywhere from 1 to 3% of the closing

cost to limit your you know your

out-of-pocket expense help you get in

the home and then start developing this

a so that's in our local area of

Northern Virginia DC and Maryland

potentially in your area - there might

be zero down programs as well as if

there's a lot here there might be a lot

there as well two final questions as we

wrap this up one is there any sort of

income limits you know can I be making a

million dollars and get a zero down loan

and then - what sort of price point

limits are there can I buy a million

dollar house and then get 0% down so

listed on the I feel like you've you've

been out with some first-time homebuyers

recently people are asking question up

on your education very - very great

questions and and are very important all

of these 0% down any first-time or the

majority of the first-time homebuyer

programs especially if you are putting

0% down will have an income limit now

it's different per region per area even

per county the highest you'll see in the

Washington DC Northern Virginia

Montgomery County and Marilyn

some of the you know those particular

counties and regions are considered more

the higher cost areas you'll see upwards

of 125 annual gross and even sometimes

up to 150 we have seen each year they've

you know increase that so it could be

different from one to two years from now

so yes income limit restrictions with

these programs that is something that

your lender should or if not you can ask

them you know to make sure that you fit

the parameters before that you know

going down the bunny hole and and

looking at those programs there will be

income restrictions and limits some of

them also are specific to maybe you are

moving in with your fiancee wife maybe

they're not on the lonesome count

household so if she maybe if she's not

even on the loan or your partner is not

only alone

it's they still may need do requirements

of verifying that and including that so

that's it that's important to discuss

with your your lender as well in terms

of other restrictions but you were

mentioned by supplies point yes for for

again for North Virginia DC and some

parts of Maryland you'll see anywhere

from five to six hundred thousand in

terms of price point we've seen that

tick up as well yeah as you know home

prices have gone up in the area I mean

if you're a first time home buyer you're

probably buying something that may be

under through six fifty true truthfully

that doesn't narrow anyone out yes that

is that is something that's definitely

going to be important as well that your

lender should relay there are caps on

the size of the prop at the house you

know like you said it's if you just take

a step back from a logical standpoint if

you're a first time home buyer putting

0% down buying a $750,000 house you know

and in an income restriction there's you

know there's a

doesn't add up definitely two great

points that you want to ask for lender

when discussing these programs and

ensuring you meet those so that you're

not getting caught or snake bit once in

her contract awesome cool thanks a lot

rich that is a little bit of a primer on

a 0% down mortgage yes guys they do

exist they're not a myth and they are

out and about in the DC area as well as

across the country so if you're

interested in learning more what I'll do

is a list and link Rich's contact

information in the description below if

you have any questions reach out to him

or drop us a comment in the comment

section below rich thanks for being here

always a pleasure until next time create

a productive day

take care