Would a lender with an option to buy a home with no money down benefit you?
I bet your answer was YES, right? Because who wouldn’t like to get into a home with no money out of pocket? I know it might sound crazy, but it can happen. In fact, it happened for a recent client of mine, Stacey. Stacey and I actually met back in March at a park. As our sons became playground buddies, we started making small talk. We mainly talked about the neighborhood improving and how much we love it.
Stacey has built her life around the neighborhood, living in an apartment only a couple minutes from her office and her son’s school. The only downside was the extremely high rent. I asked her if she ever considered buying a home, as a mortgage on a house in the area is sure to be about half of the market rents for the area.
Her only hesitation was the down payment. As a single mom, she’d express how hard it is to pay the expensive rents, take care of her family and save money at the same time, although she did say she would be ready in the next two years.
My eyes perked up, because I immediately thought of our new Down Payment Assistance (DPA) program that we offer that actually requires no money down. When I told Stacey about our DPA program, she looked at me in disbelief, asking “How does that work?”
I explained that the approval process is similar to a traditional FHA or Conventional mortgage loan. The main difference is that a soft second will be added for the total of the down payment.
After writing up a pre-approval and connecting Stacey with a Realtor partner, she closed on a home she fell in love with at the end of April. Her Realtor was able to negotiate closing costs from the seller, and Stacey actually received a small check at her closing!
If this sound likes a client of yours, let us help them take advantage of our DPA program too.