How to Buy an Entire House for $3000?
No, this is not just clickbait. This can actually happen.
To start, you need to understand how the process of buying a house works. So let’s start from here, you need a mortgage which is essentially a loan given by a lender backed by your house as collateral. If you fail to pay back the loan then the bank can maintain ownership of your home. In conventional mortgages, you need at least 20-30% of the total house value to put as a down payment as well as a credit score of at least 620 and proof of income.
What if I told you there was a different way? The FHA loan is a loan that is backed by the federal housing administration and insures the mortgage given by an FHA approved lender. If, for example, you default on your loan, then the FHA will pay a claim to the lender. This de-risks the traditional mortgage and allows for a down payment as little as 3.5% as well as a credit score of only 580.
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