You Can Buy a Home With Less Than $1,500 Out of Pocket

The number one thing I want people to know is that you do not need a large savings account to buy a home. There are programs and loan options that can get you into a home with as little as $1,500 or even less out of pocket.

VA Loans: Zero Down Payment

If you are a veteran, active-duty service member, or eligible surviving spouse, the VA loan is the gold standard. It requires zero down payment and no private mortgage insurance. If you qualify, this is one of the best mortgage products available.

FHA Loans: Low Down Payment

FHA loans require as little as 3.5% down with a credit score of 580 or higher. On a $400,000 home, that is just $14,000. And with down payment assistance programs, you may only need a fraction of that from your own pocket.

Down Payment Assistance Programs

Arizona has several down payment assistance programs that can significantly reduce or even eliminate your out-of-pocket down payment. These include:

• HOME Plus Program: Provides up to 5% of the loan amount as down payment assistance in the form of a second mortgage with zero interest, payable when you sell, refinance, or pay off the first mortgage.
• Pathway to Purchase: Offers up to 10% of the purchase price as down payment assistance for qualified first-time buyers.
• Arizona Home Plus HFA Preferred: Special loan programs with reduced mortgage insurance costs and down payment help.

Seller Concessions

Another way to reduce your out-of-pocket costs is by negotiating seller concessions. In many transactions, the seller agrees to pay a portion of your closing costs. This is something I negotiate on every deal, and it can save you thousands of dollars.

The Real Numbers

Let me give you a real example. A client of mine purchased a home in the $400K range using an FHA loan with down payment assistance and seller concessions. Her total out-of-pocket cost at closing was under $1,500. She went from renting to owning for less than many people spend on a security deposit.

You Can Do This

If you think you cannot afford to buy a home, please talk to me before you give up. I am always available to answer your questions, and I want to share my knowledge with you. The path to homeownership may be closer than you think.

Contact me or call or text me at (623) 640-8840. Have a great day!