Down Payment FREE Money, for Reals!

I blog about once every five years, so if I'm sharing something, you know I'm excited about it.

How on earth could someone in our market buy a home, receive thousands of dollars toward their down payment, and potentially walk away from the closing table with equity already built in?

I recently attended a lender's class covering the many down payment assistance programs available to Texas homebuyers. I was pleasantly surprised. I'll admit in over 23 years in real estate, I never really looked into these programs because I assumed they had impossible requirements or some awful catch. I've also never had a buyer take advantage of one of these programs, and I've learned that not all lenders offer them—or even know they exist.

The class got me thinking about how many potential homeowners might be missing out on an incredible opportunity. Home prices are the best they've been in years, yet down payment requirements and interest rates are keeping people from home-ownership: one of the most effective ways to build wealth.

Here's what happened last week.

A longtime client and previous home-owner has been renting for the past nine years. After his divorce and because he shares custody of his son, he needed to rent a home within his son's school district.

For years, he has wanted to buy another home, but the timing never seemed right. Between rising home prices, higher interest rates, and the challenge of saving enough for a down payment, he was convinced it was out of reach.

But the market was beginning to shift.

I noticed home prices dropping significantly in his desired area. Sellers were becoming more flexible on price and offering incentives, including thousands of dollars toward buyers' closing costs. Knowing he planned to stay in the area for at least another seven years, until his son finished school, I felt it was time to revisit the possibility of buying.

I also reminded him of something many buyers don't realize: Down payment assistance programs aren't necessarily just for first-time homebuyers.

So, we explored the options, found the right lender, and it turned out better than either of us expected.

• He paid $50,000 BELOW what the seller originally paid for the home. Home prices are currently at 2021 levels and it is a buyer's market.

• We negotiated $10,000 in seller-paid closing costs.

• He received $10,000 in down payment assistance through a program that does not require repayment unless he sells the home within five years, subject to the program's terms.

• He paid $3,000 out of pocket to purchase a beautiful 2,700-square-foot home built in 2019.

  
  

And here's where it gets even better. The home appraised for $40,000 MORE than his purchase price!

Between the favorable purchase price and $20,000 in assistance funds, he's already built significant equity while keeping money in his bank account.

If you don't have a large down payment sitting in the bank, there are programs designed to help qualified buyers and there are also motivated sellers who can contribute funds toward your closing costs.

Please contact me for more information or for a lender referral to determine if you qualify. 512-925-9720. audrey@audreypudder.com