Home Buying $100 Out of Pocket

Home Buying

Home Buying $100 Out of Pocket

Buying a home with only $100 out of pocket? It can happen! My clients closed on their new home for less than $100. Actually, it was $99.83 total.

My clients Chris and Tanya not only closed on a home for less than $100 out of pocket, they found the needle in the haystack. Were searching for a 4 bedroom home with a price under $300,000.

The criteria for their new home was a bit of a unicorn. It needed to be as close to Portland as possible. It had to be in a decent school district. And it needed 4 bedrooms and more than one bath for the three adult and two children in the family. Additionally, it needed to be financeable.  The buyers obtained a 100% loan-to-value (LTV) loan, which they received from a local credit union that they were members of.

The 100% LTV loan is not a common.  I honestly had not seen this type of loan since before the crash of 2007. I was suspect of it to begin with. Whatever home Chris and Tanya were to buy had to be in good shape.

After looking in Portland at homes that needed serious amounts of work, Chris and Tanya realized they had to look in Vancouver, WA. Homes are just more affordable in Vancouver. However, there were not many options. There were less than five homes that were for sale  under $300,000 and only two that were financeable of five. Most needed too much work still. Then our unicorn presented itself.

Located in the Hazel Dell area,  the home is adjacent to a more expensive neighborhood, walkable to schools as well as shopping and just minutes off I-5.  Plus it was under budget, listed at $275,000.

Chris and Tanya were swift to go see it.  After viewing the home, we made the quick decision  it was the right fit.  We made a slightly over-asking price offer and asked for $5,000 in closing costs.  Chris and Tanya did have to put money down for earnest money, which was 1% of the purchase price. So there was initial out of pocket more than the $100.   It was the right situation. The sellers had just moved overseas.  We had to wait for a response due to time difference. After two days we got a response. We were accepted.  YAY!!

Within a matter of an hour of our offering being accepted, we had our home inspection set up for the next day.  The home had some unexpected issues. The sewer had root intrusions, the chimney needed some work as it was starting to crumble in spots, the roof needed a little work as well as the gutters.  We got bids and were surprised at the costs. The sellers wanted to get their own bids and found the costs to be in-line.  They agreed to do the repairs. YAY! Another win!

The next obstacle was the appraisal.  We had been looking at homes not as nice in the areas, so we were not concerned.  The appraisal came back quickly and over the asking price of $280,000 as well! Win #3!!

From appraisal on, we were just waiting for repairs to be completed. All were completed quickly. Closing day came and I received the closing statement and my clients ended up getting $2,700.17 back at closing. Total out of pocket on the purchase of  just $99.83.

If you would like more information on how to purchase a home with little money out of pocket, reach out to me and let’s talk.

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