I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Rebecca Nassar Dunne is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.
if you are looking to invest in the stock market, I suggest you Consider a fiduciary with mortgage-backed securities knowledge for guidance. Prices today may look like dips tomorrow.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Yes, so true. But it’s getting harder and harder to avoid them. I moved 40 miles outside the city just to get away from having an HOA. But heck, it’s so worth it!
We bought our house with 3.5% down but it worked for us. Fortunately, my career was just growing, so at the time, our mortgage was like 40% of our income, but now it's around 12%. You have to weigh out your options before buying a home and factor where you are in your career, can you still save if you buy the home etc and always have an emergency fund when buying a home because things like to break!
Did a 0% loan in 2002. Not an ideal situation, but back then if we saved 10k a year the same house was 10k more. Yes PMI sucked but we paid it off in 14 years. Had a mortgage of $900. That same apartment for $600 is now over $2,000 and our home is worth 3x what we paid for it.
Good timing! I saw somebody on TV talking about how anybody can make money if they try hard. When the host pressed her, the story was I bought a condo. The real estate market near me skyrocketed. I sold that and bought a house in a cheaper market and invested the rest and my stock turned into a million dollars. This video proves how many people had the opposite experience.
We purchase 0 down in 2017 Now worth almost 3x. We are planning to pay off in next 3 years. No car payments for past 10 years helps alot ! Drive 20yr old car and once home is paid for We can buy new rides and eat car payments
I bought my house with an FHA loan in 2001. Zero down. Paid it off five years ago. It’s now worth almost 4 times what I paid for it. So it worked out for me. But those were different times back then.
Yep, we bought our house in Dallas in 2010, and back then, the government was also giving away thousands of dollars to 1st time hm buyers that didn't have to be paid back!!! It's now worth 3 times what we paid for it.....we'll never see that again!!! In 2023, we finally paid it off.
We used a USDA loan in 2020 before things went bonkers and cashed that house out two years later for a $125k profit and moved to a bigger house. It worked out for us as well. I think its more about timing. One size does not fit all.
Great video! For 2024, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with “Jessica Lee Horst” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
Mortgage broker here! One thing I would take issue is that he implies that there are parallels to the financial crisis which is not true at all. Back then lenders were not verifying income or assets when giving out loans, hence why the system collapsed. Now income and assets are strictly regulated, foreclosure rates are near record lows as a result. The US has had an undersupply of housing for the last decade plus which is why home prices keep rising. It's ok to wait to buy a house but don't be under the impression that there is another mortgage crises ahead and you'll be able to scoop up some cheap houses.
I am using mine to buy as we speak, but I belive he is talking about the predatory practices of lenders like them, we have the advantage with the VA loan due that we don't get penalized for not providing a down payment, the people who use conventional loans get penalized for no down and they tend to take on more than they can handle, the VA loan is the best thing for military.
There are many who purchased 0 down and later were foreclosed due to unforseen circumstances, job loss, repairs because they didn't make enough. Congratulations on your luck, but you wouldn't have been "screwed". Are you saying anyone who hasn't bought is "screwed"?
Yes I am fantasizing about homes I can't afford on Zillow, but they are by no means lavish as suggested by George. I look at tiny basic starter homes which are crazy expensive in today's economy.
I had to deal with the FOMO of wanting to not rent for another year and jump into a house next summer ('25). But after speaking with the wife (AND LISTENEING LOL) I can relax and, yes rent and, save for another year to comfortably afford a 20% down payment by the time summer of '26 comes. Thank God for godly wives🙏🙏
Pretty cool, man. I have VA loan so I did zero down but that’s because I didn’t really have money to put down any. My wife and I agreed on atleast 10% down with our next purchase and then throw money from sale at the principal. Zero down when I don’t have money makes me feel broke and childish. Never again
@@cowboydestroy lol whatever you say man, God created math and everything knowable so sure 😁 mathly, godly, whatever your human brain can comprehend to understand what I’m saying 🙏🏾
I have a feeling you are newly married because you haven't learned yet that listening to the wife is always a mistake. You'll be pissed when you decide to keep waiting and home prices increase faster than you can save so you're in the same position or maybe even a worse position to buy later than you are now. So you'll decide to put it off and save longer and tell yourself you'll buy in 2027, or 2028 lol
@@BLdontM yup “newly” ish 3 years married 10 years together. But no it’s not a mistake to listen to your partner 🤣 are you a boomer?? LOLLLLL what is this comment section
@@gmonster24 3 years in you're still very much a rookie. It's ok, you'll learn when houses have gone up another 15% by 2026 and you're not in any better position to buy and wishing you ignored your wife and bought now or summer '25 as you originally planned.
We (me and wife) can actually purchase (outright in cash) a very large, luxury home in a very affluent town in the East Bay of San Francisco and still have money left over in our investment portfolio. We choose instead to live in a 50 years old, modest size, non custom-made, tract home in a very affluent town in the East Bay. Mortgage totally paid off years ago. Our excess cash goes directly into our investments. I can sleep at night! Living the dream!
Telling people to buy homes now is the reason we are in this mess. The worst financial mistake ANYONE can make besides getting married as a man is buying a home in a bad market. I am more than financially ready to buy a home. I can put 40% down on a 250k home. I make 3 to 4x median income for the area. With costs right now, if I bought a home, I'd lose a projected 5m in retirement because the cost to own is simply too high. This market is stupid. Either wait for the next home affordability thing to arise from the chaos and use that as a vehicle to true home ownership or rent
As a mortgage loan originator, who uses UWM, I have never recommended or sold a zero down conventional mortgage to a borrower. Not a good product. My clients are my livelihood, my name means more than a few extra bucks.
So all those people you discriminated against whose equity would be double and have a WAY lower payment than rent now don’t have a home cuz of your opinion and are paying ever increasing rent.
I think its not about the down payment, its that they are trying to loan to people that are unable to save the money. If they cant save it the issue is how will they pay it. Its awesome you pulled that off, but unfortunately YOU are exceptional and not the norm. Awesome you did that! Im doing a nothing down loan for my house, but its a VA loan so a bit different
I did the same in 2021 and locked in a crazy good interest rate. Rents in my area have already skyrocketed past the base cost of my house (mortgage/taxes/insurance), not to mention the already significant appreciation. If someone is already paying that amount in rent and is not overextending themselves, why not switch to something that allows building equity?
At this point it feels on purpose that they get people to fail these loans so they can scoop up cheap housing. Part of me thinks they don't want a full on crash though. Just enough only they get access to cheap houses that failed their loans.
@drexelspivey872 This is true. But if you have a lot of people foreclose on their home because they can't afford the home, wouldn't that cause the demand to drop with a massive influx of homes going on the market from foreclosures?
@@crashtestdummy1972 let me correct my statement, I can only speak for where I live in which demand outweighs supply pretty incredibly. I just see people wishful thinking “oh I’ll wait out buying a home prices will go down” when in turn the opposite happens
@@drexelspivey872 Supply and demand is irrelevant when the participating parties don't have money to transact. Housing will collapse because people who can't afford to buy (i.e. those making less than 80% of the area median income) are going to purchase houses they can't afford. It's 2008 except, for some reason, they're making it more obvious. Now you HAVE TO under earn in order to qualify to get screwed over. In 2008, anyone could do it.
I dont disagree that for most people, it is best to save for a downpayment. But the 07 crash was not because loans were given at 0%. It was caused by giving loans to people - a lot of them fraudulently - without properly vetting their ability to pay it back. A good downpayment is one factor that proves ability to pay, but a 0% down loan to someone who makes $100k, has never missed a debt payment, has a long history of employment, etc. is less risky of a loan than to someone who puts 10% down but barely has the income to afford it, has a history of jobless periods, has a history of missed payments, etc. Good topic, poorly placed theme.
Disagree. If a person makes $100K annually but doesn't have a down payment for a house...not financially mature enough, in my opinion, to take on a mortgage. The whole point is to plan, which means delay immediate gratification.
@@bobbybrown870 I never said anything about whether that person making $100k annually should or should not buy a house. I was simply commenting on the cause of the 07 crisis. It wasn't the 0% down, it was the greed of lenders pushing people into loans who they knew couldn't afford the payments by fraudulently reporting their income or by giving them a low initial rate on a variable rate loan. In my first sentence I said that I don't disagree with the video that most people would be best served to have saved for a downpayment. I just disagreed that a lack of downpayment is what caused the crisis.
@@bobbybrown870 Having enough for a down payment plus a set aside for repairs and an emergency fund is not feasible for a large number of first timers. It's risky, but depending on circumstance it's a reasonable choice. Otherwise they'll probably be constantly priced out given home values.
@@thomasriehl4554 You do understand that a significant reason for skyrocketing home prices is demand which is increased by 0 down programs like this, right?
I'm thankful I was able to buy our home $0 down in 2014. The responsibility for something I "owned" and starting a family finally got me to grow up; something not even the Army could do. It'll be 10 years this November, and we're Baby Step 4-6 and saving CASH for a Disney trip next year. We were desperate at the time, but here we are, literally living the dream!
VA loans are a bit different and I assume that's what you used and thank you for your service. They are probably one of the lowest cost 0 down loans out there because the VA assumes the risk... any disability rating and you even avoid the funding fee. Conventional 0 down loans like the one shown is this clip use creative and expensive risky financing to cover the part that would normally be a required down payment.
@@caseycooper2381 we weren't married at the time, so we couldn't use the VA loan. We used an FHA--an old house originally built in 1900, with a nice addition doubling it's size added in the 90s. We'd like a bigger kitchen, but everything suits our needs.
I'm 33 and have been watching a ton of financial literacy / home ownership / retirement content the last few weeks. This video was a nice change of pace from the "spend 15m on this video thinking about the next 30 years" type of content. Great edits and the humor is much appreciated!
I bought my first house with 3% down and it was a mistake. I had just graduated college and started making a decent salary. I listened to my parents who encouraged me to overspend and buy the most house I could afford. It worked out because I worked tons of paid overtime and had 2 roommates, but it easily could've gone South.
After college (2012) I had just gotten married.. I had some a not so great income wife was still in school.. I had some people telling me to buy the most expensive house I could afford… I went with my gut and got the best cheapest house I could find in a decent area. Found a townhouse for $86,500! Sold it like 5 years later for $125k and did about nothing to it.. That was the best decision I ever made.. that cheap mortgage made paying off our student loans far easier than other choices we could have made. It also allowed us to sock away money into retirement and pay for a car in cash (eventually our salaries went up)..
That's boomer advice. It's like saying to walk into a business and hand deliver your resume to the manager and shake his hand to get the job. Buying the most expensive you can get is bad, but stretching the budget a little has some logic to it - houses appreciate as a percentage, so your more expensive house appreciates more than a cheaper house in the same time, and being fresh out of school you'll likely be getting many raises in the coming years making that mortgage payment easier to handle. It can save the hassle and expense of wanting to upgrade from the cheap starter house after only a couple years.
@@BLdontM but the larger appreciating value doesn’t help you in the immediate when you might be trying to also pay off other debt… and or student loans.. But the 1st home that you think you could live in for the next 5 years.
@@sanchilandscapedesign6316 I would've bought what I could easily afford or wait until I could. I would only buy a place if I expected to live there 5 years or more. With a condo, make sure you understand all the fees and assessments.
My husband and I used a no down payment VA mortgage twice. I am now a widow with a totally paid off house that has more than doubled in value since we bought it in July of 2008.
RIP to your husband and thank yall for your service🙏. I am also a veteran, my wife and I also used the VA home loan to purchase our 1st home. No regrets😎
@@TheFirstRealChewy Very true. After serving in the USCG for eight years, my husband had a very stable paycheck and a federal pension working for the government.
But at that time if it’s in an appreciation zone when rates drop the value should go up. The equity should be able to pay that off…doesn’t work well if you’re not in an appreciation area
A gigantic amount of people are underwater on auto loans right now. I think the first blow up will be in the auto market well before the mortgage market.
My husband and I used a $10k grant to add to our down payment. We already planned to move after five years, enough time for the debt to be forgiven. We moved in less than 18 months. Luckily, we found a good area, put on a new roof, and made enough fixes in the house to cover paying the grant back. (When we moved in none of the door knobs matched, half of the ceiling fans were broken, and the carpet had holes in it). He's right about planning for the future. If your plan depends on everything going right, it's not a good plan.
I just bought my place with the VA home loan. And I had the seller cover my closing…. Yay for me, it really was zero down but I didn’t have that big caveat. That’s how you buy a house while on baby step 2 😅 But my monthly mortgage is $400 less than the average rent in this town, so I think I’m winning
You’ll likely be covering those closing costs when you’re the seller. Pray that your personal circumstances don’t change between now and when you have enough equity into the home, likely in 10 years time due to the way amortization schedules work. Likely before then you’ll find out that owning a home also comes with owning the problems. Things break. Water lines develop leaks, septic tanks deteriorate, trees fall, and infestations occur, all of which will cost you money. Welcome to home ownership!
@@wan3416 I have used some of my savings to have professionals redo the carpet and the upstairs water fixtures. I have increased the value with the work I put into it, and also, neighboring properties (identical floor plans and same HOA) have appreciated about 15k-20k in the last 6 months since I bought the place I know that if I needed to sell, I would probably only break even after realtor fees. But also, I have a very high income for this region and I bought the smallest house I could get away with. I know I should have bought it cash (I don’t have the cash) or on a 15-year mortgage (a 15y mortgage would eat up all the extra money I’m putting towards paying off debt) but in my situation I needed a place to live and my monthly payments including HOA are cheaper than renting. It’s not ideal but I only just discovered the Ramsy plan lol
@@wan3416depends on state and standard practice. If state allows it you can ask the buyer to cover but I highly doubt that will become the normal with the current market trend
He could pay extra as if he were renting. That’s what me and my partner have been doing and we turned our 30 year into a 21 year in only 2.5 years by being diligent.
Anything less than 6% down is basically negative downpayment, because if you have to sell immediately your costs are likely to be 6% or more (sales commission, adding in legal fees, etc.).
I was also shocked to see some of these offers going around again. Why is it happening? Because it was 25 years ago...most people looking to buy now were barely old enough to understand how to make change - let alone the state of the economy. That's how they can get away with it. Hey, many of the folks coming up with these schemes are in the same age group; how can they learn from history when they know little about it.
I got a zero down mortgage from the VA in 2009 after the crash you mention at 6.5 percent 2 years later refinanced at 3 percent for 15 years, now paid for and our home is worth 3.5 times what we paid. This is an interesting take on zero down mortgages. But not the same as what happened in 2008, guidelines are in place to make sure people have the income. There is an IRS form that has to be filled out for IRS to verify income. Also no way I would tell someone to rent for the rest of their life. Bad advise cause rent never goes down, ever! Also liked the way you plugged in your affiliate links in the video.
The Ramsey team also actively preach against using VA loans, hope you aren't surprised. Ive used VA loans multiple times, and am in a fantastic position. A lot of principles are good, but I think they've missed the mark completely on VA loans.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
She goes by ‘Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
I kept my down payment for the house and bought through a local credit Union with 0% down. I only did that in my circumstances because I knew the house was under priced. After the first year the house was appraised which gave me 43% equity I’m getting out of the mortgage ASAP before I’m 40. I wouldn’t recommend my path unless you know real estate as a business not a home.
I get that this deal is different with the two loans being taken out, but I'm not necessarily against the idea of a 0 down payment. We used a VA home loan back in 1998 with a 0 down payment, and it's allowed us to invest money that would otherwise have been stuck in the house. The key is not buying a house outside your budget, which can be avoided with or without a down payment.
I’ve also used the 0% down VA loan a few times. Most recently in 2020. As long as you stay within budget you should be fine. Currently my mortgage, insurance, and taxes amount to 12% of my take home pay. This doesn’t include the extra Input towards my mortgage principle.
We used the 0% VA mortgage too and also have no PMI which is great. We do have savings, no other debt, and pay more on principle each month. We are in an area where rent cost is absolutely insane and it made no sense for us to rent. This can be a terrible option for those who aren't financially responsible or who are in a pinch but sometimes it does make sense.
Can you explain more about how much a monthly mortgage should be % of income. I’m worried about my aunt and uncle because he did the VA loan and now has a monthly mortgage of 3.2K and brings in 4.5K a month from disability… so I’m trying to learn more about this because they didn’t have a down payment and I’m worried. And the interests are so high their 350K house will be paid off once they paid 1.2 million over lifetime (which will be never) and they got promised that the monthly mortgage will lower over time with interest rates…Any advice helps. I’m just trying to learn
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I am fortunate I made decisions that changed my finances for the better (acquired over 1M in 2years) through my financiaI planner. Got my 2nd house in July and hoping to retire nxt yr.
Instead of this plan, we should limit the number of single & mult-family homes that one can buy to simply turn into rental properties. These homes should be kept for people who are actually going to live in them. Not rent them out.
The main problem is too much demand for too little Supply. And what calls that? Too many morons having too many babies. So many people think they need to create 3,4,5 ,or even 7 freaking kids When our nation has already been overpopulated thus too much demand for too little of housing as it is in our country. I'm not trying to suck up to a communistic nation like China but I do empathize with a simple point of limiting how many human lives could be created that in the end 18 to 30 years later now neither on Holmes and they end up flooding the market creating too high demand for two low a supply of housing Too big a demand for two small supply of carotid always creates a problem for the buyer and always creates an advantage for the seller
So if someone is a landlord and they're good at it, they shouldn't be able to acquire more properties? I'm sorry that's just a strange idea to me, it'd be like telling a tax preparer he can only prepare 15 returns a season, or a carpenter he can only build 15 cabinets in a month, etc.
@@knottheory79220 No... housing is a fairly finite supply with builders not wanting to build modest single family homes "starter homes." If there's only so much to go around you need a cap to prevent a monopoly. We have too many investors and people like me shouldn't be out of luck just because some greedy rich person bought all the starter houses and didn't leave any for me!
@@knottheory79220 I think you see it that way because you genuinely believe landlords are a value add to society. I would argue landlording has very little to do with skill, and mostly possession of capital. Another view is it's more like a payday loan service. They get the growth on their capital....because they have the capital to take risks with. Meanwhile those without the capital have to accept whatever terrible service is offered, with monthly payments comparable if not more than the original mortgage. Hence the renter is stuck never actually able to start gathering capital for themselves, hence my payday loan comparison.
I "bought" my house for essentially 0% down 11 years ago. In fact I got a cash back mortgage and I used the money to put a new roof and furnace into the house before we moved in. I am still living in the home and my current mortgage is much less then I would be paying for a small apartment in my city. I took a big chance and I came out better off then if I hadn't taken that chance. The first 5 years was tough as the interest rate was high because of the cash back, but I managed to get through it even though I was jobless for 3 months during that time. I had no help from family or friends. This would probably not be a good idea for everyone, I was just lucky.
No…in 2012 Navy Federal credit Union put us in a 0 down mortgage, even though we had 20%. We wanted our house, so we took it. 300K house is now worth 800 and we live in Downtown DC and our mortgage is $1500-2000 than the average rent in my neighborhood. Yeah we are paying PMI, but that’s going to removed because we have enough equity to buy our own house…. And we are 6 months ahead. And yes we have more than that saved.
I expect a 30%-50% temporary decline in house prices. I know this is going against the Ramsey opinion. But we’re facing deflation and a decrease of money velocity, due to incoming depression. It’s not gloom and doom but a normal correction in the business cycle to eliminate malinvestments. Look at commercial real estate - the banks will be forced to liquidate massively depreciated assets in their portfolio to stay liquid. Residential market will follow. The good deals are coming and no, you shouldn’t buy a house right now. But everyone has an opinion ❤
My first home was 0 down i was saving for 20% down but found out I could do 0 but it honestly worked out because it was the beginning of the boom and the value nearly doubled when i sold it 5 years later, used that to pay off my truck and put 20% down on new home, this was by pure luck i didn’t understand money then.
Whats scarier is suggesting renting something in which you will never own and help the landlord build equity as a better suggestion. Stretching your DTI is far worse of a threat than your down-payment presuming you intend to live in the property at least 5 years. Renting imo is a short term bridge while you prepare for homeownership not something to do forever
And if you’re never ready, financially? Whether you rent for 2yrs or 20, if you’re not financially ready, you’re not ready. You may be helping someone else, the landlord, BUT you’re keeping yourself out of financial trouble
@marcedwards7110 there will always be individuals who are never ready but I'm presuming those who are watching this show at least have the bare minimum required to move to with a little guidance
You're also forgetting about the costs associated with selling a home (in NY, 7% of the sale price is commission paid by the seller) so she'd be even further behind
Apart from the obvious risk of the market falling/crashing and having zero equity, a lot of people go for first houses that are the next step up, ie over-buying. Buy humble, buy cheap, it does not have to be perfect, and very few people ever stay in their first home. So that first home purchase should be with a view of staying there only about 5 years, maybe 10. You can put up with things in the shorter term.
For my area that 54k a year income (80% or less income in my zip code) can get you a 0% down mortgage on a median house price of 249k. I foresee foreclosures.
In my country there was one time like in 2015 onwards is 0% and even cashback like 10% to 30% where you can even cashout.....the house prices skyrocket due to the massive demand and now that the interest rates are up and demands are down and prices are down, they are still surviving....even if they sell now they are still positive. All boils down on how you manage your $...if u cant then definitely dont do it.
I’ve purchased every home I’ve ever owned with zero down sans one using VA loans. How has it worked out for me? I’m a millionaire now and I’ve never made more than $60000 a year in my life. I must admit, I’ve never had to pay PMI because it’s a VA loan.
@@retnuh1262not down on the south specifically States like Louisiana and Mississippi you wont... unless you love sweating your balls off while you try to sleep and freaking 80° nights during the summer time
We bought our first home in 2017 on something similar to this. CalHFA. I was $200 out of pocket but had TWO additional loans. I think the difference was I didnt have to pay on the additional loans until the mortgage was done or we sold. Sounds like this new one youre paying on the additional loan at the start. What Im getting at is this isn't exactly new...that being said what happened in my case? Well fortunately it was a fixerupper. After some remodels including floors, paint, and an ikea kitchen we sold it in 2023 pocketing a good $125k when all was said and done. It worked out for us but we also chose very carefully what we were buying and put a lot of sweat into it. Doesnt mean it would work out the next time.
35 years ago I took out a 0% mortgage from the VA at 12% interest. Now I own that home Free and clear and rent it out. I live in another house that's nicer and also does not have a mortgage. Your advice might be good for some people, but it's not one-size-fits-all.
If the $15k convinces you to buy the house, think again. You can easily spend that on maintenance and repairs and getting the house set up to function for you in year one. And every year thereafter.
The rise in price of a typical home has negated any wage growth I've had over the past 15 years. So I'm not buying unless I can save up enough to buy cash to avoid 30 years of payments
We got a 0% down mortgage but it's a VA loan where we didn't pay the fee due to my husband's disability rating. It actually has saved us money vs traditional. Plus our rate is only 3% We'll have to paid off much quicker. We've paid off 47% of our loan in less than 4 years. I'm happy about it
0 down mortgages is not what caused 2008. The lack of lending standards and NINJA loans is what did that. There really isn’t that much difference between zero down and 6% down for a mortgage. Remember, all VA mortgages require nothing down. The list of what could go wrong only hurts if she is squeezing her budget to afford the house in the first place and has no form of emergency fund. That doesn’t change if she put 5% down on the home, and as a matter of fact if she held onto that 5% down instead that could be what she needs to tap into to pay the emergency expenses. I do agree that lending standards are dropping, this isn’t a great time to buy a home, but the most important thing to remember is to actually be ready to buy a house before pulling the trigger. The mistake people make is buying too much house when they aren’t ready.
The difference is that zero down mortgages (as he lays out in the video) are a second loan you’re taking out on top of your primary mortgage, so you’ll be paying both at once, and most people don’t realize they have to pay the DP loan back in full if they ever want to move.
Scared me for a second. I'm a huge fan of $0 down VA loans, but this is not at all the same. For VA loans you are mortgaging 100%, but you only pay standard mortgage payments and can get in and out without being automatically in the hole. This requires a second 3% loan and PMI on the mortgage. Absolutely crazy.
Ive lived in same home for over 30years. Debt free for over 20years. I am the classic millionaire next door that nobody knows. I own homes on both sides of me debt free. I put coin operated washer and dryers in rentals & these people think I'm the maintenance man & are totally unaware that i own their rental. YEEEEE HAAAAAW..
The 2008 crash wasn't just isolated terrible mortgage lending by 1 opportunistic company. It was a massive collapse because (a) banks were bundling these terrible loans together as an investment opportunity and selling them on the market to institutional investers like pension funds and (b) because the bank could make so much in fees on the sale of this "investment" they were heavily incentivised to increase the volume of loans whether or not the loans were any good. A single business going big into sub-prime won't hurt anything, unless they can create a market for the resale of crappy loans owned by broke people.
This is interesting because my credit union offered my husband and I a 0 down loan in 2022. 3.75% interest rate. We had to be really careful to make sure the home we found was WELL UNDER what we qualified for. We kept the 10k we had saved up invested in the stock market instead. We had things go wrong with it but were able to save more money in 2023 that built up a small emergency fund. I think it’s something to be super wary of going into and not to take lightly. We know we will only break even on our house if we sold today with all our other expenses. It’s definitely giving 2008 vibes again.
Here’s the numbers breakdown: $350k home renting for $1,950. A zero down mortgage at todays rates over 30 years is $3,150 🤯 You’d have to put 36% down ($126,000) to get your mortgage down to $1,940 which would finally be below what it’s currently renting for.
If you want to do this loan, buy a duplex. You can depreciate half of your home, and the income generation is passive income. You can pay extra payments (don't have to) from the income you are receiving. But your payments will be less because of rent collected. Being a landlord is work, and risky. But a very doable situation if you need a no down payment house.
I did this in 2021. I am now in the position to buy my second home because of the equity I have in my first home. Rent is literally throwing money in the trash for a bed to sleep on. The "Save money for a down payment" worked for Grandpa when houses cost $30,000.00. If you want to own a home, you have to accept some amount of financial risk. He is making you think there is a way to buy a home without accepting any risk.
For reference, we bought a 172k condo and are now shopping for a 300k house while being in the position to pay off a substantial amount of credit card and auto debt. Is we had rented for this duration. We would be signing a new lease for more than what our mortgage will be on a 300k house. Be stuck paying thousands each month towards debt and have no progress towards paying off a mortgage.
Can't argue with any of this. We got a zero down loan in 2003 but did pay some earnest money up front (Pick a pan, pick a lot). Refinanced twice. Stuck with an FHA loan right now with PMI but we're at 3% so not much we can do about it. Looking forward to paying it off early.
Why are they falling for it AGAIN? They're not. We have new not-ready people now. Let me make some people cry by reminding y'all that 2008 was 16 years ago.
Merci pour les mises à jour continues, je préfère trader en bourse car c'est plus rentable. Je gagne en moyenne 34 500 $ par semaine même si je fais à peine du trading.
Après avoir récolté jusqu'à 325 000 dollars en échangeant avec elle, j'ai acheté une nouvelle maison et une voiture ici aux États-Unis 🇫🇷🇫🇷 J'ai également payé l'opération de mon fils (Oscar). Gloire à Dieu.shalom..
I'm not saying I endorse these loans, but I wouldn't say they are the cause of the 08 financial crisis. The repackaging of these loans as a financial product and fraudulently selling them as a safe investment is what made it a country wide crisis. We should of let those banks fail, then you wouldn't see lenders offering loan terms like this.
I put the minimum on my house but then again the mortgage amount equaled rent and according to mortgage pre approval, i bought half the house i could afford and it worked out very well. Rent is crazy now. If you can get mortgage less than your rent with a house with no major problems and not in a flood zone, it could work
How do you guys feel about 0% down VA loans? That would be a great topic to cover in a video! Obviously a much different scenario than financing the last 3% in a separate loan, but you're still fully mortgaged.
I currently have well over $1M in equity from $0 down mortgages (VA). So not sure the advice the Ramsey crew is giving is the best, just make sure you are buying well within what you can afford and you are fine.
Their whole point is that their advice works when things go well and when things go wrong. You gambled and you won, that’s great (really), but it doesn’t mean that strategy always works.
@@masoquistaeo My point is that their advice does not always work. There are tons of people that have literally been saving for years or even decades for the magic 20% down with a 15 year mortgage, resulting in them also missing out on a lot of equity and still renting because buying doesn't currently make financial sense.
What about a VA loan with 0 down? That's what i did, but i also got 30k in incentives from the builder and put 300 extra a month to principle(with planned increases as time goes on). But i guess that's where the financially stable/smart part comes in. So 0% down is not always bad, at least imo. For sure, though , this loan type in the video is horrible.
George didn't answer the burning question in my mind. If Josephine has to sell the house and immediately pay the 3% interest free loan, does UWM get first priority to foreclose over the other bank that loaned her the other 97%? Or does UWM just get lots of fees up front?
08 was more about garbage loans and tons of horrible lenders, giving these people adjustable interest rates that included balloon payments. If that predatory practice isn't happening in this 100%, it shouldn't turn out any worse than any mortgage with a PMI. 🤷🏾♀️
We actually did this for our first home in 2013. Our rates were 2.75 for the down payment loan and 3 for the main mortgage. Our down payment loan will be paid in 10 years so our monthly mortgage payment will go down. Luckily our home is worth a lot more due to renovations and market value. This strategy worked for us while we were young and looking to start a family in a good town. I can see how it might be a blessing and a curse depending on situations right now.
My first house was on a low down-payment program; the math made sense, BUT only because rents in my area at the time were double what mortgages on the same property would be. (The magic of a town with a large temporary population.) Even with mortgage insurance, buying gave me breathing room that renting didn’t. In retrospect, it was a good decision.
Job security is a farce when the economy turns upside down. Knock on effects during 2009 proved to many that their perceived job security was just that: perception only
Ya that’s scary. It’s like they are doing the opposite of what they should be doing. I could see 0% down if you make good income. But 0% down and low income. Ya they defaulting.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
This is huge! think you can point me towards the direction of your advisor? been looking at advisory management myself.. seeking ways to invest and make more money with the uncertainty in the economy.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Rebecca Nassar Dunne is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I searched her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.
Affording our mortgage is tough as well. I have suggested cashing in, renting or relocating, and investing the rest in the stock market.
If you can afford to relocate, you should manage the mortgage.
if you are looking to invest in the stock market, I suggest you Consider a fiduciary with mortgage-backed securities knowledge for guidance. Prices today may look like dips tomorrow.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Who is this person guiding you and how can i reach he/she?
Don’t move into a house/neighborhood where you have to pay HOA fees
Yes, so true. But it’s getting harder and harder to avoid them. I moved 40 miles outside the city just to get away from having an HOA. But heck, it’s so worth it!
HOA is a scam
I would rather live in a tent than an hoa.
@@Dbb27I'd rather live anywhere than to pay rent forever!
We bought our house with 3.5% down but it worked for us. Fortunately, my career was just growing, so at the time, our mortgage was like 40% of our income, but now it's around 12%. You have to weigh out your options before buying a home and factor where you are in your career, can you still save if you buy the home etc and always have an emergency fund when buying a home because things like to break!
You’re more the exception than the rule though!
Did a 0% loan in 2002. Not an ideal situation, but back then if we saved 10k a year the same house was 10k more. Yes PMI sucked but we paid it off in 14 years. Had a mortgage of $900. That same apartment for $600 is now over $2,000 and our home is worth 3x what we paid for it.
Did you account for inflation?
Good timing!
I saw somebody on TV talking about how anybody can make money if they try hard.
When the host pressed her, the story was
I bought a condo. The real estate market near me skyrocketed.
I sold that and bought a house in a cheaper market and invested the rest and my stock turned into a million dollars.
This video proves how many people had the opposite experience.
We purchase 0 down in 2017
Now worth almost 3x.
We are planning to pay off in next 3 years. No car payments for past 10 years helps alot !
Drive 20yr old car and once home is paid for We can buy new rides and eat car payments
I bought my house with an FHA loan in 2001. Zero down. Paid it off five years ago. It’s now worth almost 4 times what I paid for it. So it worked out for me. But those were different times back then.
Same. We bought with a Rural Home Loan in 2010 with no down payment. We're still paying, but we lucked out buying at the bottom of the market.
Yep, we bought our house in Dallas in 2010, and back then, the government was also giving away thousands of dollars to 1st time hm buyers that didn't have to be paid back!!! It's now worth 3 times what we paid for it.....we'll never see that again!!! In 2023, we finally paid it off.
We used a USDA loan in 2020 before things went bonkers and cashed that house out two years later for a $125k profit and moved to a bigger house. It worked out for us as well. I think its more about timing. One size does not fit all.
Great video! For 2024, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Do you mind sharing info on the adviser who assisted you?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with “Jessica Lee Horst” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
Mortgage broker here! One thing I would take issue is that he implies that there are parallels to the financial crisis which is not true at all. Back then lenders were not verifying income or assets when giving out loans, hence why the system collapsed. Now income and assets are strictly regulated, foreclosure rates are near record lows as a result. The US has had an undersupply of housing for the last decade plus which is why home prices keep rising. It's ok to wait to buy a house but don't be under the impression that there is another mortgage crises ahead and you'll be able to scoop up some cheap houses.
The video is wildly off base in many regards
Yep
I had zero down on a VA loan. I bought my house for 245k. VA loans have no PMI. If I had waited a listened to him I would have been screwed.
I am using mine to buy as we speak, but I belive he is talking about the predatory practices of lenders like them, we have the advantage with the VA loan due that we don't get penalized for not providing a down payment, the people who use conventional loans get penalized for no down and they tend to take on more than they can handle, the VA loan is the best thing for military.
And you are educated about these things. Some people don't understand the risk
There are many who purchased 0 down and later were foreclosed due to unforseen circumstances, job loss, repairs because they didn't make enough. Congratulations on your luck, but you wouldn't have been "screwed". Are you saying anyone who hasn't bought is "screwed"?
VA loans have a PMI. Not paid monthly but in a lump sum of 4% built into the loan. Unless that has changed
Yes I am fantasizing about homes I can't afford on Zillow, but they are by no means lavish as suggested by George. I look at tiny basic starter homes which are crazy expensive in today's economy.
You can't even find a house for under 150k unless it's a dump
I had to deal with the FOMO of wanting to not rent for another year and jump into a house next summer ('25). But after speaking with the wife (AND LISTENEING LOL) I can relax and, yes rent and, save for another year to comfortably afford a 20% down payment by the time summer of '26 comes. Thank God for godly wives🙏🙏
Pretty cool, man. I have VA loan so I did zero down but that’s because I didn’t really have money to put down any. My wife and I agreed on atleast 10% down with our next purchase and then throw money from sale at the principal.
Zero down when I don’t have money makes me feel broke and childish. Never again
@@cowboydestroy lol whatever you say man, God created math and everything knowable so sure 😁 mathly, godly, whatever your human brain can comprehend to understand what I’m saying 🙏🏾
I have a feeling you are newly married because you haven't learned yet that listening to the wife is always a mistake. You'll be pissed when you decide to keep waiting and home prices increase faster than you can save so you're in the same position or maybe even a worse position to buy later than you are now. So you'll decide to put it off and save longer and tell yourself you'll buy in 2027, or 2028 lol
@@BLdontM yup “newly” ish 3 years married 10 years together. But no it’s not a mistake to listen to your partner 🤣 are you a boomer?? LOLLLLL what is this comment section
@@gmonster24 3 years in you're still very much a rookie. It's ok, you'll learn when houses have gone up another 15% by 2026 and you're not in any better position to buy and wishing you ignored your wife and bought now or summer '25 as you originally planned.
We (me and wife) can actually purchase (outright in cash) a very large, luxury home in a very affluent town in the East Bay of San Francisco and still have money left over in our investment portfolio. We choose instead to live in a 50 years old, modest size, non custom-made, tract home in a very affluent town in the East Bay. Mortgage totally paid off years ago. Our excess cash goes directly into our investments. I can sleep at night! Living the dream!
Telling people to buy homes now is the reason we are in this mess. The worst financial mistake ANYONE can make besides getting married as a man is buying a home in a bad market.
I am more than financially ready to buy a home. I can put 40% down on a 250k home. I make 3 to 4x median income for the area. With costs right now, if I bought a home, I'd lose a projected 5m in retirement because the cost to own is simply too high. This market is stupid. Either wait for the next home affordability thing to arise from the chaos and use that as a vehicle to true home ownership or rent
I'm assuming then you're invested mostly in stocks ? But are there any other types of assets you are investing into?
As a mortgage loan originator, who uses UWM, I have never recommended or sold a zero down conventional mortgage to a borrower. Not a good product. My clients are my livelihood, my name means more than a few extra bucks.
They should all be like you
I always preached to my agents when I had a company to take good care of their customers and their commissions would take care of themselves.
So all those people you discriminated against whose equity would be double and have a WAY lower payment than rent now don’t have a home cuz of your opinion and are paying ever increasing rent.
@@TexasMortgageBroker because he never sold that product doesn’t mean they didn’t buy. You’re making assumptions.
I put 0 down when I bought my house in 2014. Now it's worth 3 times as much and I'll have it paid off in 8 years. 😮
There are always exceptions to the rules. His advice still holds true for the majority of home buyers
You got unbelievably lucky. Congrats.
I think its not about the down payment, its that they are trying to loan to people that are unable to save the money. If they cant save it the issue is how will they pay it. Its awesome you pulled that off, but unfortunately YOU are exceptional and not the norm. Awesome you did that! Im doing a nothing down loan for my house, but its a VA loan so a bit different
@@evr0.904 I was gonna say that.
I did the same in 2021 and locked in a crazy good interest rate. Rents in my area have already skyrocketed past the base cost of my house (mortgage/taxes/insurance), not to mention the already significant appreciation.
If someone is already paying that amount in rent and is not overextending themselves, why not switch to something that allows building equity?
So what you're saying is, people who are patient can wait for this to crumble like 08 again and snag cheap houses? Sign me up!
At this point it feels on purpose that they get people to fail these loans so they can scoop up cheap housing. Part of me thinks they don't want a full on crash though. Just enough only they get access to cheap houses that failed their loans.
No housing won’t collapse demand is higher than supply. Once interest rates are cut houses are going to skyrocket
@drexelspivey872 This is true. But if you have a lot of people foreclose on their home because they can't afford the home, wouldn't that cause the demand to drop with a massive influx of homes going on the market from foreclosures?
@@crashtestdummy1972 let me correct my statement, I can only speak for where I live in which demand outweighs supply pretty incredibly. I just see people wishful thinking “oh I’ll wait out buying a home prices will go down” when in turn the opposite happens
@@drexelspivey872 Supply and demand is irrelevant when the participating parties don't have money to transact. Housing will collapse because people who can't afford to buy (i.e. those making less than 80% of the area median income) are going to purchase houses they can't afford. It's 2008 except, for some reason, they're making it more obvious. Now you HAVE TO under earn in order to qualify to get screwed over. In 2008, anyone could do it.
I dont disagree that for most people, it is best to save for a downpayment. But the 07 crash was not because loans were given at 0%. It was caused by giving loans to people - a lot of them fraudulently - without properly vetting their ability to pay it back. A good downpayment is one factor that proves ability to pay, but a 0% down loan to someone who makes $100k, has never missed a debt payment, has a long history of employment, etc. is less risky of a loan than to someone who puts 10% down but barely has the income to afford it, has a history of jobless periods, has a history of missed payments, etc.
Good topic, poorly placed theme.
Disagree. If a person makes $100K annually but doesn't have a down payment for a house...not financially mature enough, in my opinion, to take on a mortgage. The whole point is to plan, which means delay immediate gratification.
@@bobbybrown870 I never said anything about whether that person making $100k annually should or should not buy a house. I was simply commenting on the cause of the 07 crisis. It wasn't the 0% down, it was the greed of lenders pushing people into loans who they knew couldn't afford the payments by fraudulently reporting their income or by giving them a low initial rate on a variable rate loan.
In my first sentence I said that I don't disagree with the video that most people would be best served to have saved for a downpayment. I just disagreed that a lack of downpayment is what caused the crisis.
@bobbybrown870 not unless they just started making 100k.
@@bobbybrown870 Having enough for a down payment plus a set aside for repairs and an emergency fund is not feasible for a large number of first timers. It's risky, but depending on circumstance it's a reasonable choice. Otherwise they'll probably be constantly priced out given home values.
@@thomasriehl4554 You do understand that a significant reason for skyrocketing home prices is demand which is increased by 0 down programs like this, right?
I'm thankful I was able to buy our home $0 down in 2014. The responsibility for something I "owned" and starting a family finally got me to grow up; something not even the Army could do. It'll be 10 years this November, and we're Baby Step 4-6 and saving CASH for a Disney trip next year. We were desperate at the time, but here we are, literally living the dream!
It’s absolutely fine to do as long as you’re fiscally responsible. And I’m sure you have tons of equity in your house now.
VA loans are a bit different and I assume that's what you used and thank you for your service. They are probably one of the lowest cost 0 down loans out there because the VA assumes the risk... any disability rating and you even avoid the funding fee. Conventional 0 down loans like the one shown is this clip use creative and expensive risky financing to cover the part that would normally be a required down payment.
Disney isn't the dream though
@@georgewagner7787 you're right; the dream is owning a home!
@@caseycooper2381 we weren't married at the time, so we couldn't use the VA loan. We used an FHA--an old house originally built in 1900, with a nice addition doubling it's size added in the 90s. We'd like a bigger kitchen, but everything suits our needs.
Glad we didn't wait. We got VA 0% down in 2021 and our home value went from 390k to 508k. Our rate is 2.37%
I'm 33 and have been watching a ton of financial literacy / home ownership / retirement content the last few weeks.
This video was a nice change of pace from the "spend 15m on this video thinking about the next 30 years" type of content.
Great edits and the humor is much appreciated!
I bought my first house with 3% down and it was a mistake. I had just graduated college and started making a decent salary.
I listened to my parents who encouraged me to overspend and buy the most house I could afford.
It worked out because I worked tons of paid overtime and had 2 roommates, but it easily could've gone South.
After college (2012) I had just gotten married.. I had some a not so great income wife was still in school..
I had some people telling me to buy the most expensive house I could afford…
I went with my gut and got the best cheapest house I could find in a decent area.
Found a townhouse for $86,500! Sold it like 5 years later for $125k and did about nothing to it..
That was the best decision I ever made.. that cheap mortgage made paying off our student loans far easier than other choices we could have made.
It also allowed us to sock away money into retirement and pay for a car in cash (eventually our salaries went up)..
That's boomer advice. It's like saying to walk into a business and hand deliver your resume to the manager and shake his hand to get the job. Buying the most expensive you can get is bad, but stretching the budget a little has some logic to it - houses appreciate as a percentage, so your more expensive house appreciates more than a cheaper house in the same time, and being fresh out of school you'll likely be getting many raises in the coming years making that mortgage payment easier to handle. It can save the hassle and expense of wanting to upgrade from the cheap starter house after only a couple years.
@@BLdontM but the larger appreciating value doesn’t help you in the immediate when you might be trying to also pay off other debt… and or student loans..
But the 1st home that you think you could live in for the next 5 years.
Would you have bought a condo / apartment instead? I’m having trouble finding out what to do
@@sanchilandscapedesign6316 I would've bought what I could easily afford or wait until I could. I would only buy a place if I expected to live there 5 years or more.
With a condo, make sure you understand all the fees and assessments.
My husband and I used a no down payment VA mortgage twice. I am now a widow with a totally paid off house that has more than doubled in value since we bought it in July of 2008.
RIP to your husband and thank yall for your service🙏. I am also a veteran, my wife and I also used the VA home loan to purchase our 1st home. No regrets😎
It can work as long as you can make the payments. However, you shouldn't do it without understanding and accepting the risks.
@@TheFirstRealChewy Very true. After serving in the USCG for eight years, my husband had a very stable paycheck and a federal pension working for the government.
Congratulations for winning your game of Russian Roulette.
Just because it worked once doesn’t make it a smart move.
@@wan3416it has worked for thousands of vets for 80 years…
I’ll add one more scenario you missed: if rates drop and she wants to refinance she CANT because that 0% second mortgage is due on sale OR refinance.
That’s a good point
Yeah, it's basically a prepayment penalty, loosely disguised as a favor.
But at that time if it’s in an appreciation zone when rates drop the value should go up. The equity should be able to pay that off…doesn’t work well if you’re not in an appreciation area
The scariest thing is the zero-down mortgage with all fees included, basically a 105-110% LTV. Underwater immediately.
Right
What’s so scary? If you lose your job or hate the place, you just hand in your keys and lose nothing. Might be scary if you’re the bank.
@@GarBlaineNavy you must have been too young to consciously live through the 2008-2009 era.
@@PeperazziTube I was an adult in 2008. You’re missing the point.
@@GarBlaineNavy if you got nothing to lose, losing it all is not scary, I get that, lol
A gigantic amount of people are underwater on auto loans right now. I think the first blow up will be in the auto market well before the mortgage market.
Never borrow for a car. Just get 4 wheels that run
My husband and I used a $10k grant to add to our down payment. We already planned to move after five years, enough time for the debt to be forgiven. We moved in less than 18 months. Luckily, we found a good area, put on a new roof, and made enough fixes in the house to cover paying the grant back. (When we moved in none of the door knobs matched, half of the ceiling fans were broken, and the carpet had holes in it). He's right about planning for the future. If your plan depends on everything going right, it's not a good plan.
I just bought my place with the VA home loan. And I had the seller cover my closing…. Yay for me, it really was zero down but I didn’t have that big caveat. That’s how you buy a house while on baby step 2 😅
But my monthly mortgage is $400 less than the average rent in this town, so I think I’m winning
You’ll likely be covering those closing costs when you’re the seller. Pray that your personal circumstances don’t change between now and when you have enough equity into the home, likely in 10 years time due to the way amortization schedules work.
Likely before then you’ll find out that owning a home also comes with owning the problems. Things break. Water lines develop leaks, septic tanks deteriorate, trees fall, and infestations occur, all of which will cost you money. Welcome to home ownership!
@@wan3416 I have used some of my savings to have professionals redo the carpet and the upstairs water fixtures. I have increased the value with the work I put into it, and also, neighboring properties (identical floor plans and same HOA) have appreciated about 15k-20k in the last 6 months since I bought the place
I know that if I needed to sell, I would probably only break even after realtor fees. But also, I have a very high income for this region and I bought the smallest house I could get away with.
I know I should have bought it cash (I don’t have the cash) or on a 15-year mortgage (a 15y mortgage would eat up all the extra money I’m putting towards paying off debt) but in my situation I needed a place to live and my monthly payments including HOA are cheaper than renting.
It’s not ideal but I only just discovered the Ramsy plan lol
@@wan3416depends on state and standard practice. If state allows it you can ask the buyer to cover but I highly doubt that will become the normal with the current market trend
He could pay extra as if he were renting. That’s what me and my partner have been doing and we turned our 30 year into a 21 year in only 2.5 years by being diligent.
0:16 I thought I was the only person who did this.
I fantasize over cheap houses with good bones that my advisor won't let me buy. 😂
Anything less than 6% down is basically negative downpayment, because if you have to sell immediately your costs are likely to be 6% or more (sales commission, adding in legal fees, etc.).
I was also shocked to see some of these offers going around again. Why is it happening? Because it was 25 years ago...most people looking to buy now were barely old enough to understand how to make change - let alone the state of the economy. That's how they can get away with it. Hey, many of the folks coming up with these schemes are in the same age group; how can they learn from history when they know little about it.
Bingo
I got a zero down mortgage from the VA in 2009 after the crash you mention at 6.5 percent 2 years later refinanced at 3 percent for 15 years, now paid for and our home is worth 3.5 times what we paid. This is an interesting take on zero down mortgages. But not the same as what happened in 2008, guidelines are in place to make sure people have the income. There is an IRS form that has to be filled out for IRS to verify income. Also no way I would tell someone to rent for the rest of their life. Bad advise cause rent never goes down, ever! Also liked the way you plugged in your affiliate links in the video.
The Ramsey team also actively preach against using VA loans, hope you aren't surprised. Ive used VA loans multiple times, and am in a fantastic position. A lot of principles are good, but I think they've missed the mark completely on VA loans.
Ramsey is against VA loans, I think they totally missed the mark with their position on them.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
She goes by ‘Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website… thank you for sharing.
I kept my down payment for the house and bought through a local credit Union with 0% down. I only did that in my circumstances because I knew the house was under priced. After the first year the house was appraised which gave me 43% equity I’m getting out of the mortgage ASAP before I’m 40. I wouldn’t recommend my path unless you know real estate as a business not a home.
I get that this deal is different with the two loans being taken out, but I'm not necessarily against the idea of a 0 down payment. We used a VA home loan back in 1998 with a 0 down payment, and it's allowed us to invest money that would otherwise have been stuck in the house. The key is not buying a house outside your budget, which can be avoided with or without a down payment.
Homes were significantly more affordable in 98 bud
I’ve also used the 0% down VA loan a few times. Most recently in 2020. As long as you stay within budget you should be fine. Currently my mortgage, insurance, and taxes amount to 12% of my take home pay. This doesn’t include the extra Input towards my mortgage principle.
We used the 0% VA mortgage too and also have no PMI which is great. We do have savings, no other debt, and pay more on principle each month. We are in an area where rent cost is absolutely insane and it made no sense for us to rent. This can be a terrible option for those who aren't financially responsible or who are in a pinch but sometimes it does make sense.
Can you explain more about how much a monthly mortgage should be % of income. I’m worried about my aunt and uncle because he did the VA loan and now has a monthly mortgage of 3.2K and brings in 4.5K a month from disability… so I’m trying to learn more about this because they didn’t have a down payment and I’m worried. And the interests are so high their 350K house will be paid off once they paid 1.2 million over lifetime (which will be never) and they got promised that the monthly mortgage will lower over time with interest rates…Any advice helps. I’m just trying to learn
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
So true! Wealth has no shortcuts, here are ways to acquire it..🔥
I am fortunate I made decisions that changed my finances for the better (acquired over 1M in 2years) through my financiaI planner. Got my 2nd house in July and hoping to retire nxt yr.
Elizabeth Greenhunts
get to her with the name
Good I got here. Big Thanks
Not caring what anyone else thinks is a super power in today's world. I'm going to remember that one from now on.
Instead of this plan, we should limit the number of single & mult-family homes that one can buy to simply turn into rental properties. These homes should be kept for people who are actually going to live in them. Not rent them out.
The main problem is too much demand for too little Supply. And what calls that? Too many morons having too many babies. So many people think they need to create 3,4,5 ,or even 7 freaking kids
When our nation has already been overpopulated thus too much demand for too little of housing as it is in our country. I'm not trying to suck up to a communistic nation like China but I do empathize with a simple point of limiting how many human lives could be created that in the end 18 to 30 years later now neither on Holmes and they end up flooding the market creating too high demand for two low a supply of housing
Too big a demand for two small supply of carotid always creates a problem for the buyer and always creates an advantage for the seller
So if someone is a landlord and they're good at it, they shouldn't be able to acquire more properties? I'm sorry that's just a strange idea to me, it'd be like telling a tax preparer he can only prepare 15 returns a season, or a carpenter he can only build 15 cabinets in a month, etc.
@@knottheory79220 Corporations are taking away the American dream of owning a home.
@@knottheory79220 No... housing is a fairly finite supply with builders not wanting to build modest single family homes "starter homes." If there's only so much to go around you need a cap to prevent a monopoly. We have too many investors and people like me shouldn't be out of luck just because some greedy rich person bought all the starter houses and didn't leave any for me!
@@knottheory79220 I think you see it that way because you genuinely believe landlords are a value add to society.
I would argue landlording has very little to do with skill, and mostly possession of capital.
Another view is it's more like a payday loan service. They get the growth on their capital....because they have the capital to take risks with. Meanwhile those without the capital have to accept whatever terrible service is offered, with monthly payments comparable if not more than the original mortgage. Hence the renter is stuck never actually able to start gathering capital for themselves, hence my payday loan comparison.
I "bought" my house for essentially 0% down 11 years ago. In fact I got a cash back mortgage and I used the money to put a new roof and furnace into the house before we moved in.
I am still living in the home and my current mortgage is much less then I would be paying for a small apartment in my city. I took a big chance and I came out better off then if I hadn't taken that chance. The first 5 years was tough as the interest rate was high because of the cash back, but I managed to get through it even though I was jobless for 3 months during that time. I had no help from family or friends. This would probably not be a good idea for everyone, I was just lucky.
No…in 2012 Navy Federal credit Union put us in a 0 down mortgage, even though we had 20%. We wanted our house, so we took it. 300K house is now worth 800 and we live in Downtown DC and our mortgage is $1500-2000 than the average rent in my neighborhood. Yeah we are paying PMI, but that’s going to removed because we have enough equity to buy our own house…. And we are 6 months ahead. And yes we have more than that saved.
I expect a 30%-50% temporary decline in house prices. I know this is going against the Ramsey opinion. But we’re facing deflation and a decrease of money velocity, due to incoming depression. It’s not gloom and doom but a normal correction in the business cycle to eliminate malinvestments. Look at commercial real estate - the banks will be forced to liquidate massively depreciated assets in their portfolio to stay liquid. Residential market will follow. The good deals are coming and no, you shouldn’t buy a house right now. But everyone has an opinion ❤
Its possible but IMHO there are too many people and not enough houses. Supply and demand
My first home was 0 down i was saving for 20% down but found out I could do 0 but it honestly worked out because it was the beginning of the boom and the value nearly doubled when i sold it 5 years later, used that to pay off my truck and put 20% down on new home, this was by pure luck i didn’t understand money then.
You actually dont own any of it until its completely paid for....and even then, you better keep up with property taxes....
Good video. Let's not forget though, that the GFC happened because the mortgages were securitized, and those securities were toxic.
Whats scarier is suggesting renting something in which you will never own and help the landlord build equity as a better suggestion. Stretching your DTI is far worse of a threat than your down-payment presuming you intend to live in the property at least 5 years.
Renting imo is a short term bridge while you prepare for homeownership not something to do forever
And if you’re never ready, financially? Whether you rent for 2yrs or 20, if you’re not financially ready, you’re not ready. You may be helping someone else, the landlord, BUT you’re keeping yourself out of financial trouble
@marcedwards7110 there will always be individuals who are never ready but I'm presuming those who are watching this show at least have the bare minimum required to move to with a little guidance
i wish I had been able to buy because houses were 250 k and now they are 2,000,000 but i got sick@@chaosdragun1608
You're also forgetting about the costs associated with selling a home (in NY, 7% of the sale price is commission paid by the seller) so she'd be even further behind
Apart from the obvious risk of the market falling/crashing and having zero equity, a lot of people go for first houses that are the next step up, ie over-buying. Buy humble, buy cheap, it does not have to be perfect, and very few people ever stay in their first home. So that first home purchase should be with a view of staying there only about 5 years, maybe 10. You can put up with things in the shorter term.
For my area that 54k a year income (80% or less income in my zip code) can get you a 0% down mortgage on a median house price of 249k. I foresee foreclosures.
In my country there was one time like in 2015 onwards is 0% and even cashback like 10% to 30% where you can even cashout.....the house prices skyrocket due to the massive demand and now that the interest rates are up and demands are down and prices are down, they are still surviving....even if they sell now they are still positive. All boils down on how you manage your $...if u cant then definitely dont do it.
I’ve purchased every home I’ve ever owned with zero down sans one using VA loans. How has it worked out for me? I’m a millionaire now and I’ve never made more than $60000 a year in my life. I must admit, I’ve never had to pay PMI because it’s a VA loan.
Zero-down mortgages are so expensive when you consider all the additional fees and higher rates, that you might as well just rent forever.
At this point I don't care about my living conditions. I just want a yard I own. I'll live in a tiny-home or trailer if I can just have a yard.
Yard and bathroom is really all I need. I can sleep in my car
@@retnuh1262not down on the south specifically States like Louisiana and Mississippi you wont... unless you love sweating your balls off while you try to sleep and freaking 80° nights during the summer time
We bought our first home in 2017 on something similar to this. CalHFA. I was $200 out of pocket but had TWO additional loans. I think the difference was I didnt have to pay on the additional loans until the mortgage was done or we sold. Sounds like this new one youre paying on the additional loan at the start. What Im getting at is this isn't exactly new...that being said what happened in my case? Well fortunately it was a fixerupper. After some remodels including floors, paint, and an ikea kitchen we sold it in 2023 pocketing a good $125k when all was said and done. It worked out for us but we also chose very carefully what we were buying and put a lot of sweat into it. Doesnt mean it would work out the next time.
The market always corrects but it feels like it never will
35 years ago I took out a 0% mortgage from the VA at 12% interest. Now I own that home Free and clear and rent it out. I live in another house that's nicer and also does not have a mortgage.
Your advice might be good for some people, but it's not one-size-fits-all.
If the $15k convinces you to buy the house, think again. You can easily spend that on maintenance and repairs and getting the house set up to function for you in year one. And every year thereafter.
Had to replace my water heater two years ago for 4k and my HVAC last year for 8k. Roofs are 10-20k. Folks need to have money if they are going to buy.
Thanks George, luckily I have my 82 year old grandmother back to work to pay my bills
The rise in price of a typical home has negated any wage growth I've had over the past 15 years. So I'm not buying unless I can save up enough to buy cash to avoid 30 years of payments
I hope young people watch George. This was a painfully obvious video to many in their 40’s but great learning/history lesson for those in their 20’s
We got a 0% down mortgage but it's a VA loan where we didn't pay the fee due to my husband's disability rating. It actually has saved us money vs traditional. Plus our rate is only 3% We'll have to paid off much quicker. We've paid off 47% of our loan in less than 4 years. I'm happy about it
0 down mortgages is not what caused 2008. The lack of lending standards and NINJA loans is what did that.
There really isn’t that much difference between zero down and 6% down for a mortgage. Remember, all VA mortgages require nothing down.
The list of what could go wrong only hurts if she is squeezing her budget to afford the house in the first place and has no form of emergency fund. That doesn’t change if she put 5% down on the home, and as a matter of fact if she held onto that 5% down instead that could be what she needs to tap into to pay the emergency expenses.
I do agree that lending standards are dropping, this isn’t a great time to buy a home, but the most important thing to remember is to actually be ready to buy a house before pulling the trigger. The mistake people make is buying too much house when they aren’t ready.
The difference is that zero down mortgages (as he lays out in the video) are a second loan you’re taking out on top of your primary mortgage, so you’ll be paying both at once, and most people don’t realize they have to pay the DP loan back in full if they ever want to move.
just like the old days.., didn’t even really change the wrapping paper
Scared me for a second. I'm a huge fan of $0 down VA loans, but this is not at all the same.
For VA loans you are mortgaging 100%, but you only pay standard mortgage payments and can get in and out without being automatically in the hole.
This requires a second 3% loan and PMI on the mortgage. Absolutely crazy.
We are right back where we were in 08! If you can fog a mirror, you can pretty much buy any house you want! It’s going to happen!
I don't know about this. Demand is higher
Scary stuff, but you missed closing and moving costs. Josephine is more likely out over $40k unless her home has suddenly skyrocketed in value.
Ive lived in same home for over 30years. Debt free for over 20years. I am the classic millionaire next door that nobody knows. I own homes on both sides of me debt free. I put coin operated washer and dryers in rentals & these people think I'm the maintenance man & are totally unaware that i own their rental. YEEEEE HAAAAAW..
Love that!
Hi Neighbor!
The 2008 crash wasn't just isolated terrible mortgage lending by 1 opportunistic company. It was a massive collapse because (a) banks were bundling these terrible loans together as an investment opportunity and selling them on the market to institutional investers like pension funds and (b) because the bank could make so much in fees on the sale of this "investment" they were heavily incentivised to increase the volume of loans whether or not the loans were any good. A single business going big into sub-prime won't hurt anything, unless they can create a market for the resale of crappy loans owned by broke people.
The problem is that this is the bank setting the trend
This is interesting because my credit union offered my husband and I a 0 down loan in 2022. 3.75% interest rate.
We had to be really careful to make sure the home we found was WELL UNDER what we qualified for. We kept the 10k we had saved up invested in the stock market instead.
We had things go wrong with it but were able to save more money in 2023 that built up a small emergency fund.
I think it’s something to be super wary of going into and not to take lightly. We know we will only break even on our house if we sold today with all our other expenses. It’s definitely giving 2008 vibes again.
Everyone is complaining about affordability, so how can anyone afford the monthly payment on a zero down mortgage?
Because it’s cheaper than rent, genius.
@@c2s2942 Run the numbers. I’ll wait for you to reply with how much down it will take to beat the rent price.
Here’s the numbers breakdown:
$350k home renting for $1,950.
A zero down mortgage at todays rates over 30 years is $3,150 🤯
You’d have to put 36% down ($126,000) to get your mortgage down to $1,940 which would finally be below what it’s currently renting for.
@@c2s2942 🤡
They can't, that's the point. If they don't have any savings, they likely have a income, spending or both problem.
If you want to do this loan, buy a duplex.
You can depreciate half of your home, and the income generation is passive income.
You can pay extra payments (don't have to) from the income you are receiving. But your payments will be less because of rent collected.
Being a landlord is work, and risky. But a very doable situation if you need a no down payment house.
I did this in 2021. I am now in the position to buy my second home because of the equity I have in my first home. Rent is literally throwing money in the trash for a bed to sleep on. The "Save money for a down payment" worked for Grandpa when houses cost $30,000.00. If you want to own a home, you have to accept some amount of financial risk. He is making you think there is a way to buy a home without accepting any risk.
For reference, we bought a 172k condo and are now shopping for a 300k house while being in the position to pay off a substantial amount of credit card and auto debt. Is we had rented for this duration. We would be signing a new lease for more than what our mortgage will be on a 300k house. Be stuck paying thousands each month towards debt and have no progress towards paying off a mortgage.
I bought 0% down with the VA loan just 8 months ago. No PMI and the home appraised recently for over 40k then what we purchased it for. No regrets.
Can't argue with any of this. We got a zero down loan in 2003 but did pay some earnest money up front (Pick a pan, pick a lot). Refinanced twice. Stuck with an FHA loan right now with PMI but we're at 3% so not much we can do about it. Looking forward to paying it off early.
Buy small house Pay it off fast Use that for DP on next Best case scenario avoid rent then eventually avoid PMI
It’s called a starter home
Never rent! Stay at parents house as long as possible and save for a home.
Why are they falling for it AGAIN? They're not. We have new not-ready people now. Let me make some people cry by reminding y'all that 2008 was 16 years ago.
Merci pour les mises à jour continues, je préfère trader en bourse car c'est plus rentable. Je gagne en moyenne 34 500 $ par semaine même si je fais à peine du trading.
Je suis favorisé financièrement, merci Jésus, bénéfice hebdomadaire de 32 000 $, quelle que soit la gravité de l'économie.
Comment
..? Je suis un débutant dans l'investissement cryptographique, pouvez-vous me guider sur la façon dont vous avez réalisé des bénéfices ?
OUI!!! C'est exactement son nom (Florence), tant de gens l'ont fortement recommandée et je commence tout juste avec elle 😊 de Brisbane en Australie🇦🇺
Je suis surpris que ce nom soit mentionné ici, je suis tombé sur le témoignage d'un de ses clients sur CNBC news la semaine dernière.
Après avoir récolté jusqu'à 325 000 dollars en échangeant avec elle, j'ai acheté une nouvelle maison et une voiture ici aux États-Unis 🇫🇷🇫🇷 J'ai également payé l'opération de mon fils (Oscar). Gloire à Dieu.shalom..
0% down is great if your buying your first starter home you can afford. Bad idea if your buying your first time dream house
yep.. I love looking at mansions I can't afford even to rent for just 1 week! let alone purchase!
I'm not saying I endorse these loans, but I wouldn't say they are the cause of the 08 financial crisis. The repackaging of these loans as a financial product and fraudulently selling them as a safe investment is what made it a country wide crisis. We should of let those banks fail, then you wouldn't see lenders offering loan terms like this.
I’d like some more stats on how many of these people who get a loan who wouldn’t otherwise qualify for the loan actually end up better off long-term
I put the minimum on my house but then again the mortgage amount equaled rent and according to mortgage pre approval, i bought half the house i could afford and it worked out very well. Rent is crazy now. If you can get mortgage less than your rent with a house with no major problems and not in a flood zone, it could work
VA loans are 0% down and have been for decades with no issues. ‘08 was that plus interest only loans.
How do you guys feel about 0% down VA loans? That would be a great topic to cover in a video! Obviously a much different scenario than financing the last 3% in a separate loan, but you're still fully mortgaged.
VA loan pro: no downpayment required (but you still can), no mortage insurance, lower interest rates. Cons: high mortage.
I saw an ad today for a HELOC credit card. Wow. Just wow.
Dolphins Headcoach making a very good point
I own 5 houses / units...all built and purchased by my family starting in 1937. I don't have a mortgage. Lol😊
I currently have well over $1M in equity from $0 down mortgages (VA). So not sure the advice the Ramsey crew is giving is the best, just make sure you are buying well within what you can afford and you are fine.
Their whole point is that their advice works when things go well and when things go wrong. You gambled and you won, that’s great (really), but it doesn’t mean that strategy always works.
@@masoquistaeo My point is that their advice does not always work. There are tons of people that have literally been saving for years or even decades for the magic 20% down with a 15 year mortgage, resulting in them also missing out on a lot of equity and still renting because buying doesn't currently make financial sense.
What about a VA loan with 0 down? That's what i did, but i also got 30k in incentives from the builder and put 300 extra a month to principle(with planned increases as time goes on). But i guess that's where the financially stable/smart part comes in. So 0% down is not always bad, at least imo. For sure, though , this loan type in the video is horrible.
George didn't answer the burning question in my mind. If Josephine has to sell the house and immediately pay the 3% interest free loan, does UWM get first priority to foreclose over the other bank that loaned her the other 97%? Or does UWM just get lots of fees up front?
08 was more about garbage loans and tons of horrible lenders, giving these people adjustable interest rates that included balloon payments. If that predatory practice isn't happening in this 100%, it shouldn't turn out any worse than any mortgage with a PMI. 🤷🏾♀️
We actually did this for our first home in 2013. Our rates were 2.75 for the down payment loan and 3 for the main mortgage. Our down payment loan will be paid in 10 years so our monthly mortgage payment will go down. Luckily our home is worth a lot more due to renovations and market value. This strategy worked for us while we were young and looking to start a family in a good town. I can see how it might be a blessing and a curse depending on situations right now.
That was a great transition the the adds lol 7:01
ads
Loan officers and real estate agents will be marketing this like crazy. People will jump on this. No lesson learned.
My first house was on a low down-payment program; the math made sense, BUT only because rents in my area at the time were double what mortgages on the same property would be. (The magic of a town with a large temporary population.) Even with mortgage insurance, buying gave me breathing room that renting didn’t. In retrospect, it was a good decision.
If you can’t afford the mortgage, you can’t afford the maintenance
Weird. I bought my home using a VA Loan with ZERO down. $1200/mo mortgage.
Not gonna lie George, it’s pretty tempting. Especially if you know you have job security and make about 5k monthly with joint income
Job security is a farce when the economy turns upside down. Knock on effects during 2009 proved to many that their perceived job security was just that: perception only
Ya that’s scary. It’s like they are doing the opposite of what they should be doing. I could see 0% down if you make good income. But 0% down and low income. Ya they defaulting.