Buy A Home With No Money Down. More about Down Payment Assistance Programs.
Having to put 20% down on your home is a myth. There are so many options, especially in our area of DMV that allow you to purchase a home with NO money down! The DC Open Doors program is one of many loan down payment programs that help home buyers start building their wealth. The idea that you have to pay someone to live somewhere, you might as well pay yourself is a strong one.
GDW Welcome back to Great Day Washington! We’ve got insider tips to help you build wealth through property investing and the Real Deal in Real Estate. I’m here with Chong Yi of The Yi Team at Fairway Independent Mortgage Corp, Josh Greene of Eastern Title & Settlement, along with Sharif Ibrahim of Old City Properties. Welcome to Great Day, guys!
JOSH Good Morning!
CHONG Hey Markette!
GDW Well, with the new year people are always speaking of ways that they can build wealth. I want to start with you, Sharif. A lot of people think, well, real estate might be difficult because I need 20% down payment. But you say, that’s not true.
SHARIF No, most people do think you need 20% and it’s just a myth. There is a great program here in the district today that allows you to purchase something for no money down. That’s just one of the great programs that are here available for district residents today.
GDW No money down in DC. That sounds like a win for someone who is looking for move, but also use their property as a way of building wealth. Can you guys elaborate on that?
CHONG Yea, absolutely. First of all, DC Open Doors is the name of the program, but there are a lot of other down payment assistance programs around the DMV. So that’s just one of them. And it’s great, and a great opportunity for people who feel they can’t purchase because of a lack of down payment or closing costs. It may be possible to help them purchase the property with some sort of assistance. There are other 100% programs. I’m all about building wealth. We all want to be wealthy. The best way would be to buy real estate. I would certainly call Sharif to do so, because he’s awesome, and I just met him, but he’s great.
SHARIF Thank you, haha!
CHONG At the end of the day, you have to pay somebody to have somewhere to live, so you might as well pay yourself. As time goes on you can increase your equity positions by paying down your loan. Then, over time the house appreciates, so you grow and become wealthy over time. Hopefully as wealthy as that guy right there. *points to Josh*
GDW Absolutely right. It’s good to be a business owner but you can be an owner by having tenants, and have them pay you.
JOSH Yes. You know one of the things DC Open Doors has, the longer you live in that house the less you have to pay back. So if they gave you $50,000, each year it’s 20% less that you need to pay back. So if you’re there for 5 years you don’t have to pay ANY of the money back.
GDW Wow! I’m thinking it might be a good strategy if people are looking to move, maybe you move into a duplex or a triplex, Live in one unit and rent out the others. So that you are getting that money without having to trade time for money.
JOSH Or do what you did. Get a townhouse and rent the basement out and live on the top two floors.
GDW We absolutely did that. I was sharing with the realtors here, that we downsized a couple of years ago. We had three levels of a town home and I moved everything out of my basement. We made that into a legal apartment that became an income generator which makes me feel more comfortable in an economy that’s been going like this my entire career. *yo-yo*
CHONG Actually, let me take some notes. How did you do that again?
GDW My husband, he’s also a smart guy. It’s strategy. Let’s talk about tax savings. They’re better here than in other parts of the country.
SHARIF Yeah, we have another great local program that essentially allows you to get 20% credit on the mortgage interest that you pay. Effectively, it feels like you’re doubling your tax savings. So we have a lot of programs here and the good word is there are a lot of great incentives for people to buy now.
JOSH There’s no reason to rent. Because you can’t write off your rent. If you can get a house and you can get your house payment around the same cost as your rent payment you’ll get the tax break. You end up making money buying a property instead of paying someone else who owns the property is getting the tax break anyway.
CHONG And there’s something in DC as well, I guess I want to move to DC because it’s fantastic. If you’re a first time home buyer in DC, and a lot of people don’t know this, and Sharif reminded me of this. You can actually have 50% of your transfer costs reduced. There’s paperwork you have to send to the city, but you can have 50% of that. That can become a big credit in terms of buying your home
SHARIF You don’t need to have as much just for the cost in order to buy a property. Such great programs here in the district today and in the surrounding areas. We’re really happy to be able to talk about them and let people know that the American dream of home ownership is alive and well, with our great appreciation rates here in the local area too. It just makes it that much more of a slam dunk.
CHONG Markette, do you need a tenant? Actually I would love to rent from you.
GDW Ah, we’re good. You know DC has got it going on. So many people are moving in, but let’s talk after the show. I love everything that you’re sharing. I’m going to get some more ideas. Thank you. Please contact all of these guys for more information. Sharif, Josh and Chong are here to help navigate the current real estate market for you!
MEET THE REAL DEAL IN REAL ESTATE EXPERTS
Chong Yi, NMLS #198732
Producing Branch Manager
The Yi Team at Fairway Independent Mortgage Corp.
Eastern Title & Settlement
Old City Properties
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If you liked Buy a Home With No Money Down, you might also like this video to help millenials buy their first home. And if you’re deciding which loan is best for you, read is a 15 or 30 Year Mortgage Right For Me?