100% Financing Is Back! No Down Payment Required On Your Next Home Purchase!


What’s up guys roger here with vantage home loans today i’m going to talk to you guys about the new 100 financing fha loan that was just released so 100 financing was out of the picture for a while because of covid and things like that either way over the last two years the market has been so scorching red hot that if you try to put an offer and say you’re doing

100 financing or even fha sellers were not going to accept your offer they just thought they just looked down on fha offers because they just thought you didn’t have enough money that you wouldn’t get the loan done that you’d have problems with your appraisal so even if you’re putting in an offer an fha offer over the last two years sellers were just not going to

Accept it because they had 20 other offers with 20 30 40 50 down payment or all cash so it was just no use whatsoever getting an fha loan and either way you couldn’t do it you couldn’t get 100 financing fha loan but now they’re starting to bring it back one of the bro one of the lenders that i work with loan stream now offers 100 finance financing which is an fha

Loan on the first and then a three and a half percent loan for the second making up the full hundred percent so there are a few things that you do need to know about this program before you get too excited so uh in the past the main 100 financing program like for example in california was calhfa cal hfa um the problem with that program was it would take 60 days

To get that loan that sucks no sellers are going to wait 60 days and they would run out of money so the government had a certain amount of money they would give for these loans and then poof they would run out you couldn’t get it and you’re kind of screwed so with this program this is a private money down payment assistance so they will not run out so they’re gonna

Finance they’re gonna get an fha loan on the first they’re gonna finance the second and you’re not going to be able to put anything down well actually you have to put something down so that’s kind of a myth so i’m going to break that down for you right now what you actually have to come to the table with now if you have a really really good credit score what you

Can do is you can cover your closing costs okay so even though you’re financing one hundred percent of the price of the home so let’s say there’s a five hundred thousand dollar house the bank will give you five hundred thousand however you still have closing costs so that’s one of the things that a lot of people overlook when they’re buying a house whether you’re

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Putting any five ten twenty percent down whatever you’re putting down you gotta figure you’re going to need another one to two percent for closing costs okay but now i’m going to talk to you about how you can get around that part okay so a couple of ways you can get around the closing costs and get those covered as well number one if you have a good credit score

You can choose an interest rate that’s a little bit higher that’s going to give you credit so when you are going to get a loan from the bank let’s say you qualify for a 5 percent loan you can actually choose to get a 5.5 loan or a five point two five percent loan and the bank will give you for example five thousand dollars towards your closing costs so with 100

Financing you choose a little bit of a higher rate you get credit for that rate because you’re going with a higher rate the bank’s giving you five grand for example you can cover your closing costs now you really don’t need any money out of pocket which is absolutely nuts um the second way that you can get your closing costs covered is when you submit an offer you

Ask for a five thousand dollar seller credit okay so let’s say that again a house is on the market for five hundred thousand what you could do is you can offer 505 with five thousand dollar seller credit so the seller’s still getting 500 000 net and you’re getting 5 000 towards your closing costs or if the house has been on the market for a while just offer 500

000 or even lower and ask for five or ten thousand credit towards your closing costs that way you really don’t have to come in with any money at all so for this program to work for you to get your closing costs covered you’re still going to need a decent credit score let’s say a 700 credit score to get fha to cover to give you credit to cover your closing costs

If you have a very very low credit score like a 640 or 620 you will still qualify but you may need some money out of pocket to cover the closing costs now what are the terms so i’m glad you asked whatever you qualify for fha wise that’s going to be your rate okay now the second loan the other three and a half percent is going to be two percent above the fha rate

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So let’s say you get a 5.25 fha rate the rate on the second loan is going to be 7.25 so two percentage points above your fha rate it’s going to be a 10 year fully amortized loan okay so it’s not a 30-year loan it’s 10 years and it’s fully amortized it’s a fixed rate okay so let’s just do some quick math for example i’m going to pull up my mortgage calculator let’s

Say again you have a 500 000 house and you need three and a half percent okay so that’s 17 500 that’s how much you need so we’re going to do a 10-year term we’re going to do a 7.25 interest rate and that’s going to give you a payment of zero just kidding i don’t know i messed something up there so 17 500 second loan you’re gonna do a 10-year term you’re going

To do 7.25 interest and your payment’s gonna be 205 okay 205 a month not bad if you don’t have any down payment so this is basically four people who let’s say you just started a job making 150 grand you’re making good money but you haven’t had time to make you know save up any money yet okay and you don’t have a down payment but you make 150 grand or 200 grand

A year and you want to buy a house now you can do it or for example let’s say you’ve spent the last year paying off debt and you’ve literally like your goals i’m just going to pay off all my debt and get rid of all this debt and now you don’t have a down payment you don’t have any cash save because your goal was just to pay off debt now you can buy a house now

Again this is for people you have to be making good money because your payments are going to be high you’re going to have another 200 loan so you got to be making good money to do this it’s going to be you’re not going to be able to do this if you’re making 40 50 grand you got to be making 70 80 90 grand or more 100 grand 150 grand million grand whatever the case

You got to be making good money to qualify for this um and you have to have a decent credit score so that it works where you can get some credit cover everything no down payment at all okay so really really exciting that this program is back like i said in the beginning of the video this you know sellers were not even interested in accepting or entertaining your

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Offer nowadays the market has cooled down so much more where to the point where houses are on the market for one or two weeks they don’t have any offers you come in with a hundred percent financing or really saw pre-approval letter a really good mortgage broker like myself who can talk to the seller’s agent let them know hey this is a slam dunk you can now buy a

Home with no down payment now the only other thing that you need to know about this program is this program only goes up to the conventional conforming loan limit okay so i’ll try to find i’m going to find a link to the conforming fha loan limits put it in the description below so it cannot be high balance okay so i think in la county the high balance limit is

Around six something 650 000 something in that range so it has to be under that amount i’ll put a link in the description below so you can check your county and see what the conforming loan limit is you can only go up that high but i’m being told by my representative at lonestream that they will come out with a high balance option for this same loan and if they

Do that that’s going to be a real game chainer because the loan limit for la county for example is uh high balance goes up to 970 000 okay so 970 000 that will mean you can buy a million dollar home with no money down in la county so if once that comes out i will make a video so you want to make sure to subscribe to my channel make sure you hit the bell so you

Get the notification because once that comes out that’s going to change the game if you’re able to buy a million dollar house in la san francisco um what other accounts orange county orange county la san francisco if you’re going to buy a million dollar house with no money down that’s a huge game changer now obviously you need you’re gonna need to make a lot of

Money to qualify for that but hey i’d rather you know if you just don’t have it you make a lot of money at least you have an option so that’s it guys thank you for watching let me know in the comments below what your thoughts are if you’re going to utilize this program what you think about it and if you have any other questions alright guys see on the next one

Transcribed from video
100% Financing Is Back! No Down Payment Required On Your Next Home Purchase! By Roger Mansourian