Ever see a real snake oil salesman at work? How about the shill at the fair, cajoling folks to come in and see the bearded lady? They are not just characters from the past. They still exist today.
I have a client that needs a bit more down payment money before she can buy the home of her dreams. She is easily swayed by 100% loans or money offered by builders towards closing costs. I get it, I really do.
The problem is, 100% loans are available through the Veterans Agency. You do have to be a veteran to get this benefit. There are also great loans available for first responders like EMT's, Police, and Firemen. The problem is my client is not in any of these categories.
There is another way to get a 100% loan. That would be a program offered by the USDA. The problem with this deal is that homes have to qualify for USDA loans. This qualification around here is generally that the home has to be located in , what we like to call around here, "The Boonies". My client does not want to live far enough out from this area to get a qualified property.
Other programs exist as well, and they usually require the potential Buyer to go through several homeowner classes to qualify. My client actually went through one of these programs, but did not like all the strings that got attached.
Bottom line, there is little to no free money available to clients to help them buy a home, unless they are willing and able to abide by the various rules and regulations involved. The best way to buy a home is still to have enough available cash to cover your loan requirement and closing costs. If we Real Estate professionals can negotiate Seller paid closing costs, we absolutely will.
Probably the best practice for a potential Buyer is to talk to your loan officer early and often. They are up-to-date on many loan programs in the industry and are in the best position to help you get the best product for you.
If you would like to talk to a great loan officer in the area, please let me know and I will put you in touch.