Drew 2: 3 ways to get free money to buy a house? if you didn't know about these then listen up!

27 Jun 2023 · 2 min

Watch on YouTube

1:49

In this concise, conversational video, mortgage professional Andrew Postell outlines three primary sources of "free" money that homebuyers can tap into to reduce out‑of‑pocket costs when purchasing a property. He explains (1) seller concessions – funds the seller provides to cover closing costs or to buy down the buyer’s interest rate, often used when a home has been on the market for an extended period; (2) gift funds – genuine, non‑repayable gifts from family or friends that can be applied toward the purchase of a primary residence; and (3) down‑payment assistance (DPA) or first‑time homebuyer programs – various local, state, or federal initiatives that may offer grants or low‑interest loans, sometimes with income limits but not always restricted to first‑time buyers. Postell emphasizes that all three options can be combined, and he briefly notes eligibility considerations. The video concludes with a friendly sign‑off, encouraging viewers that these resources are often overlooked but can significantly ease the home‑buying process.

Chapters

Hey now, Drew Two Time. Hey, I thought today we would talk about the 3 different ways there are to get free money to help you buy a home. It still surprises me how few people know about these things, so let's cover them right here. Alright, number 1, seller concessions. Seller concessions are exactly what it is. The seller of the home is giving you money to incentivize you to buy their property. And you can use it towards your closing costs or even to buy down your interest rate. Now, why would a seller buy down your own interest rate? Well, have you seen any homes on the market that have been sitting there for months and months? Yeah, this is actually very common right now that a seller will give you money to buy their home. All right, let's do number 2. Number 2, gift funds. Yeah, gift funds are exactly what it is. Somebody is allowed to give you money to purchase your own primary home. And it can be family or even sometimes friends. And this is not a loan. The requirement is it's true gifts for you that you don't pay back. Free money. It is allowed if this applies. Number 3, down payment assistance programs, or sometimes they're called first-time homebuyer programs. But not all of the programs require you to be a first-time homebuyer. Some are okay with you buying your second and third homes. Many of them have income limits, but not all. It's important to know that this is just an option for you, maybe to get free money to buy a home. All right, so number 1, seller concessions. Number 2, gift funds. And number 3, down payment assistance programs. And yes, you can use all 3 to help you purchase a home. Hey, I hope all this made sense. This has been Andrew Postell. Thanks for watching today's Drew 2. Drew 2.