Once upon a time, in a distant land, there were mortgage loans that gave buyers 100% financing without having to be a Veteran or living in a Rural Area. A buyer could purchase a home and didn’t have to put any money down. All they had to do was show up at the closing table, sign their life away, and get the keys to their new home. Gone are those days!
Today, post the mortgage debacle, lenders want buyers to have skin in the game. What does that mean? They want to see a buyer reach in their pocket and put some money down to purchase a home. FHA, one of the most popular mortgage loans, requires buyers to put down 3.5% of the purchase price. That means, if you are buying a $700,000 house your down payment is $24,500. But don’t get too excited, this doesn’t include the closing cost.
If a buyer doesn’t negotiate for the seller to pay their closing cost, this could add another 2.5% to the amount you need to bring to the table. Inside that 2.5% are lender points, other loan fees, etc… On that same $700,000 house with a $24,500 down payment, the closing cost could add another $17,500 bringing your total amount needed to close to $42,000.
However, if Powerhouse Realty Group represents you, we would contribute $7,000 of our commission towards your closing cost making your total to close $35,000 instead of $42,000. So, what’s the catch? The only catch is, you must work with one of our Full-Time Powerhouse Reatly Agents to qualify for your Home Buyer Rebate. This Full-Service offering makes home-ownership in America more affordable. Visit our website to learn more about the Buyer Rebate programs for qualified buyers in your area.